Klopp confirmed that he will leave the club with which he won back-to-back Bundesliga titles in 2011 and 2012, and led to the Champions League final in 2013.
He said that he has not stepped down in order to take a break from football, but neither has he got another job lined up.
Which club will Jurgen Klopp manage next?
13%
Arsenal
12%
Liverpool
59%
Man City
4%
Real Madrid
12%
Other
"I have not planned a sabbatical, but I also have no contact to other clubs," he said. "No tactics involved. I am not tired.
"I have said that when I have the feeling that I am no longer the right coach for this extraordinary club, then I would say that. I have questioned myself all the time. And I have realised that in the past few weeks and days I was not sure that I am no longer the right person, but I could also not answer the question with 'Yes.'
"It has nothing to do with our current sporting situation. We suffered from players announcing their departures too late in the past few years, and we were no longer able to react, and came under pressure. I did not want that pressure to mount. All three of us [Michael Zorc and Hans-Joachim Watzke] made this decision.
"Aki Watzke and Michael Zorc will find a great solution for the club.
"I am not out of this world. I have already secured three season tickets. The club is bigger than us all. And always will be. The club will never forget, and I am thankful that I was allowed to be a part of it."
Dortmund's success and attacking style made Klopp one of Europe's most-coveted coaches.
The news conference was unexpectedly announced on Wednesday shortly after German tabloid Bild had reported that Klopp had asked for his contract, which runs until 2018, to be cancelled at the end of the current season, with Watzke saying "security before speed" was important in finding a successor.
Dortmund have endured a poor season and are 10th in the Bundesliga table, six points below the Europa League qualification places. They were eliminated from the Champions League this term in the round of 16 by Juventus.
Klopp has been unable to stop Bundesliga giants Bayern Munich, who pipped them to Champions League glory in 2013 and also beat them in the 2014 DFB Pokal final, signing key players Mario Gotze and Robert Lewandowski from them over the past two seasons.
Dortmund's signings, such as Henrikh Mkhitaryan in 2013 for a club-record transfer fee of €27 million, Ciro Immobile, Adrian Ramos, and Kevin Kampl have struggled to impress this season. Klopp, who was appointed coach at the Westfalenstadion in 2008, has previously said he would be open to managing in the Premier League.
German tabloid Bild reports Dortmund have targeted former Mainz coach Thomas Tuchel as his successor.
Tuchel had been linked with the post at Hamburg, only for the side to appoint Bruno Labbadia on Wednesday.
Damn son whoever lands him will get a great manager. Is he headed to City? Cause the United, Assanal positions are currently held by two good managers. I just hope City isn't stupid enough to fire him after one season if they do get him. Look on the bright side were going to get Hummel in the summer
All the good players of BVB will be leaving in the summer.
forget the two years he has left Klopp isn't a coach to pass on.
