Klinsmann, who led his team on an emotional ride to third place in the tournament in front of euphoric home crowds, cited family reasons and the high pressures of the role for his resignation, with his assistant Joachim Loew to take over as national coach.
"My big wish is to go back to my family, to go back to leading a normal life with them," Klinsmann said.
"But another important reason is that after two years of putting a lot of energy into this, I feel that I lack the power and the strength to continue in the same way.
"I quite simply feel burnt out. I want to give myself half a year's holiday."
The 'Golden Bomber', who now resides in the USA with his family, praised Loew and gave him high commendation to coach the German side.
"The only sensible option has been to ask Joachim to lead them further. I am very glad that he has taken up this challenge," Klinsmann said.
"I have always said that he was much more than an assistant trainer. He was always a firm partner. My role was perhaps that of a supervisor."
"I did not manage to reach all of the players last night. I will call them over the next few days to thank every one to thank them for this incredible experience."
Lippi steps down
Meanwhile, World Cup winning Italy coach Marcello Lippi decided to finish on a high, leaving his national team in the best possible way - as World Champions.
"I believe that I have achieved what I set out to achieve as coach of the Italian team," Lippi said in a press release.
"I want to thank the federation for the confidence it had in me during the last two years of work crowned by a result that will rest in the annals of Italian football and live on in the memory of our fans," he added.
Fabio Cannavaro (L) with Marcello
Lippi (R) who leaves as a winner
While Klinsmann’s successor looks to be already decided, 58 year old Lippi has yet to be replaced with former players Roberto Donadoni and Gianluca Vialli in the running for the position, along with coach Alberto Zaccheroni.
Lippi, who had outstanding success with club side Juventus winning five Scudettos and the European Champions League in 1996, led Italy to its first trophy in 24 years – their last success being their World Cup win in Spain in 1982.