Manual or automatic? In either case, check the linkage- it sounds be broken, and the transmission fluid level. If you have a manual it could be your clutch. If automatic, then you could need a new transmission.
SOURCE: Gear Selection Audi A4
GEAR LINKAGE ADJUSTMENT IS UNDER GAITER PLUS REMOVE ASHTRAY .......BUT I WOULD CHECK FOR WORN OR DAMAGED GEAR LINKAGES ....CLUTCH FAULT WOULD BE THE NEXT THING
SOURCE: AUDI A4 2.4V6 MULTITRONIC 2003 GEARBOX
this gearbox is computer controlled,you will have to get it on the diagnostic machine to isolate the problem,we would all be guessing if we said its so and so.......
SOURCE: Hi, I have a 6HP19A transmission in my Audi A4 3.2
Your automatic gearbox is going in "limp home mode". You need to check first the oil level. Change oil if necessary.
If the problem still occurs you shoud access the Transmission Control Module (TCM) using diagnostic equipment connected to the Data Link Connector (DLC) of the car. Then you will be full informed about the root cause of the problem, and you can replace bad pieces & reset the TCM electronic unit. 
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