Huub Stevens has resigned as coach of PSV Eindhoven, the Dutch club said on their website on Wednesday.
The Dutchman left German side Hamburg last summer to return to his homeland and take the reins of PSV on a two-and-a-half-year deal.
But PSV, Dutch league champions for the last four years, are struggling down in fifth place, 15 points behind leaders AZ Alkmaar. They were also eliminated from the Champions League during the group phase.
A club statement read: "PSV and Huub Stevens have determined, to their regret, that the relationship and trust between coach and players was not enough to achieve their potential.
"Stevens finds that there is no 'click' between himself and the players."
PSV chief executive Jan Reker expressed his shock at Stevens' resignation.
"This is the most difficult day in my career,'' he said. "Certainly with my background as a coach, this is very painful. Huub Stevens is a fantastic colleague and a fantastic person.''
Reker also confirmed the club have yet to decide who will take charge of PSV's next training session tomorrow morning.
"We have the afternoon to sort things out,'' Reker added. "We spent the morning wrapping up the finer details with Huub and I've still not had enough time to think about.''