كتب : Megan Detrie
"I want to thank everyone, especially the fans, who pushed us along to this fantastic success," an emotional Klinsmann told a news conference in Frankfurt on Wednesday.
Klinsmann, who has endured a strong wave of criticism ahead of the World Cup, has won the hearts of many Germans who want him to stay at the helm of the Mannschaft after guiding them to third place.
"It was the most beautiful World Cup ever. We've created a new image of the Germans around the world," the 41-year-old said.
Klinsmann, who won the 1990 World Cup with Germany as a player, cited family reasons for his decision to quit the Mannschaft.
"It was anything but an easy decision but one I had to make.
"My great wish is to go home to be with my family, to return to a normal life with my family," said Klinsmann in a shivering voice.
He also said that he will take at least six months off after his two-year spell with the German national team, his first managerial post, has left him "burned out".
German Football Federation co-president Gerhard Mayer-Vorfelder thanked Klinsmann for his efforts with the national team and announced Loew as a replacement.
The 46-year-old Loew agreed a two-year deal that runs until the end of Euro 2008 in Switzerland and Austria.
"Our goal is to be European champion," said Loew. "We are deeply convinced that we have established ourselves in the top of world soccer again.
"We have a young team that can only improve," he added.
Loew, who is known to be an amazing mentor, has previously coached German clubs VfB Stuttgart and Karlsruher SC, and Turkish sides Fenerbahce and Adanaspor in addition to Austrian giants Wacker Tirol.