They won only one match between September and October under former Queens Park Rangers manager Cifuentes. Leicester are winless in their last three matches, and Saturday's 2-1 loss to relegation-threatened Oxford United proved to be the last straw for the Spaniard.
“This has been a difficult decision and not one I have taken lightly... however, I believe this is the right step at this time to improve performances and results," Leicester Chairman Aiyawatt Srivaddhanaprabha said in a statement.
The 2015-16 Premier League champions were relegated from the English top flight last year.