On 14 February 2011, Favre was named as the successor of Michael Frontzeck as head coach of Borussia Mönchengladbach. He took over when the team was sitting at the bottom of the league with only 16 points after 22 match days, seven points adrift of Bundesliga safety. He instigated an immediate improvement in form and although the club still struggled, they eventually managed a narrow win against VfL Bochum in a two-legged relegation play-off to secure their place in the Bundesliga.