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On 14 January 2019, Wagner and Huddersfield Town agreed to terminate his contract by mutual consent, with the team in last place and eight points from safety.

On 9 May 2019, Wagner was appointed as manager of Bundesliga club Schalke 04 on a three-year contract until 30 June 2022.

On 29 May 2017, Huddersfield secured promotion to the Premier League for the 2017–18 season, following a victory on penalties in the play-off final against Reading. On 30 June 2017, Wagner signed an improved two-year contract. He was praised for his achievements in keeping Huddersfield in the Premier League at the end of the 2017–18 season, a feat regarded by bookmakers as improbable and described by The Guardian as "the Premier League's greatest survival story", with Wagner in particular noted as a leader of rare charisma and intelligence."

In the summer of 2016, Wagner brought in 13 players from across the continent, including Danny Ward, Chris Löwe, and Aaron Mooy. He took his players on a bonding tour of Sweden, where they had to survive with only basic equipment for a few days. The team's success in the early 2016–17 season was largely accredited to the squad's tight bond, something that Wagner claimed was a direct result of this Sweden trip. A few weeks later, they visited Austria and kept two clean sheets in matches against Bundesliga sides Werder Bremen and Ingolstadt 04. After an unbeaten start to the 2016–17 season, Huddersfield were top of the table at the start of September, including a win at St James' Park against Newcastle United.

On 5 November 2015, Wagner was appointed manager of English club Huddersfield Town following the departure of Chris Powell. He brought Christoph Bühler, who had left Borussia Dortmund on 1 November 2015, with him as his assistant.

From 2011 to 2015, he managed Borussia Dortmund II. Wagner left in November 2015 to take the job at Huddersfield Town, which he led to the Premier League via the 2017 EFL Championship play-off Final. He left Huddersfield in January 2019, soon afterwards taking the manager position at Bundesliga club Schalke 04 in July 2019.

Following his playing career, Wagner became a manager, working mostly with his former 1. Mainz 05 teammate Jürgen Klopp. Wagner was appointed as Borussia Dortmund II manager with effect from 1 July 2011. He left the role on 31 October 2015, amidst rumours that he was going to join Klopp's backroom staff at Liverpool.

In April 1997, after Canada lost to the United States in a World Cup qualifying match in which Wagner played, the Canadian Soccer Association complained to FIFA that Wagner should be ineligible to play for the United States based on his appearances for Germany's youth teams. On 2 May 1997, FIFA announced that Wagner was eligible to play for the United States because his games with the German teams were exhibitions, not official matches. However, Wagner was rarely called into the U.S. team afterward and he was not named to the squad for the 1998 FIFA World Cup.

In 1996, Wagner was recruited along with fellow Bundesliga player Michael Mason by manager Steve Sampson into the United States national team despite never having seen them play. Sampson had been recommended Wagner and Mason and made aware of their American background by U.S. player Thomas Dooley, who like them was also raised in Germany. Wagner had a United States passport, but had played for Germany's U18 and U21 teams earlier in his career. This gave him additional credibility with Sampson but posed a problem as he risked being considered ineligible to play for the United States.

Wagner made his debut in a friendly 3–1 win over El Salvador in Los Angeles on 30 August 1996, in which he was substituted at half-time for Brian McBride. He made five appearances the following year and two more in 1998, all but one as a starter.

He grew up in West Germany and made his professional debut with Eintracht Frankfurt in 1990 and played as a striker for several clubs in the first and second divisions of German football. The son of an American father and German mother, Wagner played for the United States national team, earning eight caps between 1996 and 1998.

David Wagner (born 19 October 1971) is a professional football manager and former player who is the manager of Bundesliga club Schalke 04.