In a shock development only days after the reigning premier hammered rivals North Albury by 133 points, Tiger players were told of the "mutual decision" before training on Monday night.

Long-time selector and third grade coach Tom McGrath and premiership player Luke Daly will step into the senior position for the remainder of the Ovens and Murray season.

"The board regrets to announce it has mutually parted ways with Peter German effective immediately," club president Stuart Hodgson said.

"The difficult decision is a result of changing circumstances, relating to Peter and his family's relocation to Melbourne."

German signed a three-year deal with Albury midway through last season after an extensive coaching career in the AFL and VFL.

Surprisingly, German was unable to lure a big-name player over the off-season despite the club having an abundance of player points available.

The 53-year-old coached Coburg from 2014 to 2017 before taking 2018 off to recharge his batteries.

German, who played at North Melbourne with Paul Spargo, has guided Albury to comfortable wins against Wangaratta Rovers, Wodonga and North Albury this season.

But the Tigers suffered a major hiccup when they were uncharacteristically exposed by Lavington.