The 46-year-old Matthaeus coached the side, formerly known as Austria Salzburg, to the league title last season working under Italian coach Trapattoni, but tensions between the pair forced the club to act, the club said late on Tuesday.

"The board have unanimously decided to part company with coach Lothar Matthaeus with immediate effect," said a statement on the club's website.

"Differences of philosophy meant that a good working relationship would not be sustainable in the long-term."

The 1990 World Cup winner met with Salzburg's multi-millionaire owner Dietrich Mateschitz late on Tuesday to dissolve his contract that was due to finish next year.

The former Bayern Munich midfield star took his sacking with good grace.

"I accept the decision," said the 150-times capped midfielder Matthaeus, who formerly coached the Hungarian national team.

"There was a difference in opinion over footballing matters and for Red Bull it is better if we go our seperate ways, I don't want to endanger the team's chances."