The 61-year-old had been under pressure since the Porto Alegre side was eliminated from the Copa Libertadores by Colombia`s Independiente Santa Fe last month, reports Xinhua.
"We decided there needed to be a change for the benefit of the club and have decided that this is the best way forward. There was no longer a good understanding between the coach and the players and it was important to act before it became untenable," Gremio`s football manager Rui Costa said Saturday.
Among the candidates to replace Luxemburgo are Celso Roth, Renato Gaucho and Muricy Ramalho.
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