The 66-year-old Argentine joined the Elland Road outfit in the summer of 2018 when they were in the second tier and fell just short of gaining promotion to the Premier League at the first time of asking, losing to Derby County in the championship play-off semi-finals.
Bielsa took the Yorkshire club one step better in the 2019/2020 season as he masterminded their return to the Premier League for the first time in 16 years.
Leeds finished ninth in the top flight last season but results have gone south this term, with Saturday’s 4-0 home loss to Tottenham Hotspurs leaving them in 16th position, two points above the relegation zone.
"This has been the toughest decision I have had to make during my tenure at Leeds United, taking into account all the success Marcelo has had at the club," Leeds chairman Andrea Radrizzani said on the club’s official website.
“With Marcelo as our head coach, we had three incredible campaigns and the good times returned to Elland Road. He changed the culture of the club and brought a winning mentality to us all.
“However, I have to act in the best interest of the club and I believe a change is required now in order to secure our Premier League status. Recent results and performances have not met our expectations.
“We find ourselves in a precarious league position and I feel now is the right time to bring in a new head coach, in order to have an impact in the decisive stage of the season.
“Naturally, myself, along with everyone else at the club would like to thank Marcelo for his efforts and achievements and we wish him the very best for the future.”