Academy manager Jon Rudkin, coach Steve Beaglehole and goalkeeping coach Mike Stowell will take charge of the Foxes first-team for Saturday's Championship trip to Plymouth Argyle.
Chairman Milan Mandaric said: "Given our respective visions for the football club it was decided that it would be in the best interests if we parted company.
"Our main priority now is to focus on our match on Saturday and ensure we stay on course for promotion this season.
"Contrary to media speculation we do not have an immediate replacement. The search to appoint a successor now begins."