Bayern Munich coach Ottmar Hitzfeld revealed on Wednesday he will retire from coaching for good when his current contract with the German giants expires in June 2008.

"I have no intention of carrying on after this contract," Hitzfeld told a press conference in Munich on Wednesday.

Hitzfeld, who succeeded Felix Magath in January, had initially agreed to join Bayern until the end of this season, but was persuaded to extend the contract for an extra 12 months.

Despite having twice won the Champions League - with Borussia Dortmund and Bayern - Hitzfeld could not prevent Bayern from enduring their worst season for ten years and they have failed to win a Champions League place for the first time since 1996.

Currently in his second stint at the club, the 58-year-old first coached Bayern from 1998 until 2004 and, after coming out of retirement, admitted how surprised he was to be enjoying coaching the side.

And with one year left, Hitzfeld says he wants to re-build the side, who struggled after losing their stars German captain Michael Ballack and Brazilian winger Ze Roberto last summer.

"It was hard to compensate for the departures of Ballack and Ze Roberto, I think we will need at least seven new players," said Hitzfeld.