The 50-year-old Austrian secured a sixth-placed finish in the Bundesliga this season but was reportedly unhappy with the hierarchy's refusal to offer him a contract extension beyond the end of next term.
Following the stale-mate, Hasenhuttl asked for his deal to be terminanted prematurely, which the club begrudgingly accepted.
On the decision, sporting director Ralf Rangnick said: "I would have really liked to continue into the next season with Ralph as head coach. From the bottom of my heart, I wish him all the best for the future, both professionally and privately.
Cheif executive Oliver Mintzlaff added: "We are grateful for the open and credible discussions that have been had so far. We are, however, convinced that an extension at this current point in time would not have been the right step for our club".
May 16, 2018