This, after the four-time world champions were eliminated in the round of 32, losing 4-3 on penalties to Paraguay after a 1-1 draw following extra time.
The defeat marked Germany's third consecutive early World Cup exit, following group-stage eliminations in 2018 and 2022, and the first time in the nation's history that they have been knocked out of a World Cup via a penalty shootout.
Nagelsmann had initially insisted he would not walk away from the job in the aftermath of the defeat. However, his position became increasingly difficult after a lengthy crisis meeting with DFB (German Football Federation) officials in Frankfurt, where senior figures reportedly suggested that a change of leadership was necessary.
In a public letter announcing his departure, the 38-year-old admitted the decision had come after days of reflection.
"I have done a lot of reflection since our elimination and have consulted with trusted people," Nagelsmann said. "My priority has always been the success of the team. After such a bitter disappointment, they deserve the opportunity for a fresh start."
He also thanked his players, staff and supporters.
"I want to thank my coaching staff, the support team and especially the players with whom I had the privilege of working. A special thank you goes to the fans. You carried us and gave us energy, even during difficult moments. It truly hurts me that we disappointed you and could not give you more memorable football nights at this World Cup."
DFB president Bernd Neuendorf paid tribute to Nagelsmann's efforts, saying the coach had shown "a high level of commitment and extraordinary ambition" during his spell in charge.
Nagelsmann was appointed in September 2023 after replacing Hansi Flick and became Germany's second-youngest national team coach at the age of 36. He guided the side to the quarter-finals of Euro 2024 and signed a contract extension through to Euro 2028 in January 2025.
Despite that long-term commitment, Germany's latest tournament disappointment has prompted another reset for the national side, which has struggled to recapture its former dominance in recent years.
Attention has already turned to Nagelsmann's successor, with the DFB confirming it plans to hold talks with former Liverpool manager Jurgen Klopp.
"Regarding the appointment of a new coach, the DFB leadership will now seek talks with Jürgen Klopp. He has already signaled his general willingness to take on the position," the association said in a statement.
Klopp, currently working within the Red Bull football group, has emerged as the federation's preferred candidate as Germany seek to rebuild ahead of their upcoming Nations League campaign, which resumes in September with an away fixture against the Netherlands.