Gary Monk favourite to take over.
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"Steve completed the job he was brought in to carry out," chairman Massimo Cellino told the club's website.
"We have, however, decided that a different approach is required in order to achieve our targets for the new season.
"The club is now looking to appoint a new head coach to build on the good work of Steve and Paul [Raynor, assistant head coach] and deliver the special season which our supporters deserve."
Gary Monk favourite to take over.
Earthquake in Australia reported due to the millions of Leeds supporters jumping in celebration of the news.
That is without question the most surprising news of the summer.
Only 3 more Leeds managers til Christmas
I`m surprised . A massive club need a massive manager !