The 2007 Bundesliga champions have not won in their last five matches and yesterday's 4-1 defeat at Wolfsburg proved to be the final straw for Veh.

"Armin Veh and assistant coach Alfons Higl have been relieved of their duties with immediate effect," said Stuttgart president Erwin Staudt in a press release.

"This was a difficult decision because we are grateful for what they have achieved over the last three years."

Veh was appointed to replace Giovanni Trapattoni in February 2006, initially on a short-term contract until the end of the season.

That deal was extended by a year when he guided the club to ninth in the Bundesliga table.

In his first full season in charge, he led the Swabians to a shock title success, earning him another contract extension until 2009.

But his side struggled last season, crashing out of the Champions League with just one win in the group stage and only just clinching a place in Europe on the final day of the season, qualifying for the Intertoto Cup.

Their form has not improved much this term and calls for his dismissal were heard at the Mercedes-Benz Arena during their 0-0 draw with struggling Arminia Bielefeld a week ago.

Staudt was keen to point out that his players also have to up their performance.

"I have also spoken to the players this morning and made it clear to them that they all have to play to their potential," added the Stuttgart president.

"We don't want the dismissal of Armin Veh to be an alibi for the players.

"I expect every single one of them to concentrate fully on their tasks.

"This should send a judder through the team and I hope that we can now master with the upcoming tasks."

Former Bayern Munich and Liverpool defender Babbel has been placed in charge of the first team and Staudt has every faith in the 36-year-old, who retired due to injury last year and has been assistant coach of Stuttgart's reserve team since.

"Markus Babbel will take over as coach and Rainer Widmayer will be trainer," said Staudt. "We hope that both can lead VfB back onto the road to success."

Babbel's first task will be this coming Thursday when his side travel to Genoa to face unbeaten Sampdoria in the UEFA Cup.

Schalke, Energie Cottbus and his former club Bayern Munich form the remaining three opponents in the Bundesliga this year.