Gelsenkirchen, Germany - Schalke 04 are to part company with Dutch coach Fred Rutten by the end of the season at the latest.

Rutten said Thursday he had been told by club general secretary Peter Peters that he would not be retained next season.

The 46-year-old coach denied he was in talks with PSV Eindhoven and said he was continuing to focus on his job at Schalke.

"I still have a lot of fun working here," he said.

It was not immediately clear whether Rutten, who has a contract until the end of June 2010, will continue to be in charge for the rest of the season.

Schalke are currently looking for a general manager after dismissing Andreas Mueller earlier this month.

Bild newspaper reported earlier this week that Schalke were planning to put former players Youri Mulder and Mike Bueskens in charge in a caretaker capacity.

The pair had been caretaker coaches last season after the dismissal of Mirko Slomka.

Rutten joined Schalke at the beginning of the season but the team has never looked capable of mounting a Bundesliga title challenge.

Following a 2-1 home defeat on Sunday by SV Hamburg, Schalke are lying eighth, 12 points behind leaders Hertha Berlin.

Former coach Huub Stevens on Wednesday ruled himself out as a candidate to succeed Mueller as general manager.

Former Bayern Munich goalkeeper Oliver Kahn has been interviewed about the job but has made no decision. (dpa)