Di Matteo, who has been in charge of Schalke since October 2014, when he replaced unloved manager Jens Keller, led the club to the Champions League round of 16 this season before falling to defending champs Real Madrid 5-4 on aggregate, despite a 4-3 second leg win at the Bernabeu.
Domestically, however, the Royal Blues have failed to reach the Champions League, and on the final match day of the season went down 2-0 at Hamburg. The result kept the hosts in the league, while Schalke dropped down to sixth in the standings.
While the Royal Blues have qualified for the Europa League, they could still be forced into the playoffs for the smaller European competition should local rivals Borussia Dortmund win the German Cup against VfL Wolfsburg next week.
Schalke won just five of their 17 matches in the second half of the season, and following their last win against relegated SC Paderborn last week, the fans turned against the club and called for the board to quit.
Earlier this month, in an attempt to turn the season around, former AC Milan midfielder Kevin-Prince Boateng and former Germany international Sidney Sam suspended indefinitely by the club's sporting executive Horst Heldt.
Following the 2-0 loss at Hamburg on Saturday, Heldt announced on German TV he'd "question every position" at the club. "That's clear. All, who are responsible for the sporting side, be it the coach, the players or the sporting executive. Everything has to be put on the table, and then we'll make a decision."
Heldt, who has been at the club since June 2010, is also in danger of losing his job.
Di Matteo's managerial highpoint came when he led Chelsea to the Champions League title in 2012.
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