The Dutch coach has been dismissed by the Royal Blues after his side's terrible run of form in the Bundesliga culminated in a home defeat to Freiburg on Saturday
Schalke have picked up only two points in their previous six Bundesliga fixtures, with their last victory coming against Werder Bremen on November 10.
The run has seen the side fall to seventh in the table after the surprise 3-1 home defeat to Freiburg.
Before this run, the Royal Blues had made their best start to a domestic campaign in 14 years but the club nevertheless has decided to remove the 59-year-old Dutch coach before the winter break.
Schalke's Under-17 coach Jens Keller is set to take over on an interim basis and a press conference has been organised for later on Sunday.
Stevens began his tenure in September 2011 and guided Schalke to third in the league last campaign as well as into the last 16 of this season's Champions League after topping Group B ahead of Arsenal, Olympiakos and Montpellier.