Nietzsche knew of the ambiguity in all life. He knew of the creative and destructive elements which are always present in every life process. If you want to find out about his idea of God, do not look first to his statement that "God is dead." Read instead the last fragments of The Will to Power, which is a collection of fragments. It is not a book in itself. The last fragment describes the divine demonic character of life in formulations which show the ambiguity, the greatness, and the destructiveness of life. He asks us to affirm this life in its great ambiguity. Out of this he then has another kind of God, a God in which the demonic underground, the Dionysian underground, is clearly visible. The victory of the element of rationality or of meaning is not as clear as in other philosophers like Kant or Hegel, Hume or Locke, but there is an opening up of vitality, and its half-creative, half-destructive power.
source
Paul Tillich, A History of Christian Thought, p. 494