Germany [Images] coach Juergen Klinsmann, who led his young team to a surprise third-place finish in the World Cup, has decided not to extend his contract, which expired at the end of the tournament.

A German soccer federation (DFB) official confirmed local media reports that Klinsmann would step aside and that a news conference was planned for later on Wednesday.

"The reports are not incorrect," the official said.

Klinsmann, who lives in southern California, had been urged to stay on after Germany beat Portugal in the third place match on Saturday, but he said he needed to consult with his family before making a decision.

All 23 players in Germany's squad, 93 percent of the public, according to opinion polls, and even some of his harshest critics had said they wanted him to continue.

Earlier, newspapers Bild and Sueddeutsche Zeitung and German sports news agency SID reported that the former Germany striker, who won the World Cup as a player in 1990, had decided to step down.

A news conference will take place in Frankfurt later on Wednesday, with media reports saying assistant coach Joachim Loew will be offered the job.

Germany have a friendly against Sweden on August 16 before their 2008 European Championship qualifying campaign starts in September. DFB co-president Theo Zwanziger has said a decision must be made before the match with the Swedes.

Klinsmann has dismissed reports he received a lucrative offer to coach the United States and has said he is not interested in managing another national team such as England [Images] or Italy [Images].