"Luiz Felipe is no longer Gremio coach," Gremio president Romildo Bolzan said.

"He resigned earlier this morning. He believed that his time here and his ability to take the club forward had come to an end."

Scolari began his third spell in charge of Gremio in August, just weeks after being sacked as Brazil coach following the team's 7-1 World Cup semifinal loss to Germany. Gremio lost last month's final of the Rio Grande do Sul state championship to Internacional. They are currently 18th in Brazil's 20-team Serie A standings with a draw and a loss from their first two matches.

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