BERLIN (AFP) - Bundesliga club Borussia Dortmund said on Sunday (Dec 13) that they have fired head coach Lucien Favre, a day after the team suffered their heaviest home defeat in over a decade.

Swiss coach Favre, 63, is to be replaced by his assistant Edin Terzic after Dortmund crashed 5-1 to VfB Stuttgart leaving them fifth in the league five points behind leaders Bayern Munich.

"It is very difficult for us to take this step, but we believe that the current negative development has put our season goals in danger, and we have to take action," said Dortmund sporting director Michael Zorc.

Favre himself had branded Saturday's showing "a disaster", which was the squad's heaviest home defeat since being humbled 5-1 at home to Bayern Munich in 2009.

Dortmund have taken just a point in their two league games since star striker Erling Braut Haaland was ruled out until January with a hip injury.

Since taking the reins at Dortmund in 2018, Favre has twice led the club to second place in the Bundesliga, but has often been criticised for not managing to launch a serious title challenge.

"We are all grateful to Lucien Favre for his fantastic work in the last two and a half years," said club CEO Hans-Joachim Watzke.

The club confirmed that Terzic would take the reins "until the end of the season", beginning with Dortmund's trip to Werder Bremen on Tuesday.

Terzic, 38, previously worked in Dortmund's youth system and was part of Croatian coach Slaven Bilic's staff at both Besiktas and West Ham United.