The 59-year-old's second spell in charge of the club has come to an abrupt end after their fourth successive defeat.
Wolfsburg manager Felix Magath has been sacked after the club endured their worst ever start to a Bundesliga season, the club have confirmed.
Wolfsburg have scored just two goals in their eight games so far in the league, picking up a mere five points in the process, and after enduring a fourth successive loss, a miserable 2-0 home defeat to Freiburg, the club's board appear to have decided that the time is right to make a change.
Magath led Wolfsburg to a Bundesliga title in 2009 before departing for Schalke, but returned to the club after Steve McClaren struggled to replicate the achievement. Since returning, Magath has struggled too, bringing in a large number of players but with few successes among his activity in the transfer market. Magath was also criticised for his man-management, including one infamous episode after a 3-0 defeat to Bayern Munich earlier in the season where he took his team on a run through the woods and refused to give them any water.
With the club now at a huge risk of being relegated, the appointment of Magath's successor will be crucial.