The Foxes are currently just a single point outside of the Premier League relegation places, having won the title last season,Ranieri, oversaw the greatest shock in top football history when he led the club to the title, but things have unravelled this year with the club struggling for Premier league form.
The brutal decision to dismiss the man who lead them to arguably the greatest triumph in English football history was made after Wednesday's 2-1 Champions League defeat in Seville.
The club confirmed his departure on Thursday night, calling the decision 'painful' but 'necessary'
The 65-year-old's appointment was met with criticism when he was appointed Leicester City manager in July 2015 but he sensationally inspired a team which had narrowly escaped relegation to their first-ever Premier League title.
His remarkable achievement with a squad worth just $53million.
But the Italian was unable to replicate his success this season.
While Leicester initially shone in the Champions League - winning their group - they desperately struggled in the Premier League.
The Foxes are yet to score a goal in the Premier League in 2017 and have picked up just one point from a possible 18.
He was given a vote of confidence last week by Leicester chairman Vichai Srivaddhanaprabha but insisted he was relaxed about his position at the club.
Claudio Ranieri was named the 2016 Premier League Manager of the Season, and LMA Manager of the Year. He was also awarded the Grand Officer of the Italian Order of Merit and the Enzo Bearzot Award as best Italian manager of the year, as well as the 2016 Best FIFA Men's Coach Award.