Jesse Marsch is leading the race to replace the sacked Marcelo Bielsa at Elland Road.
After a 16-year absence from the top flight, and a ninth-placed finish in the top flight in 2020/21, the club has only two points above the drop zone and a run of five defeats.
They have conceded 21 goals in that time and have the worst defence in the league with 60 goals conceded in 26 games.
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The Whites could be demoted back to the Championship if they lose their final two games of the season, and after the defeat to the Reds, he admitted he was worried.
The most difficult decision that the chairman has had to make was to fire the coach.
The toughest decision I have had to make during my tenure at the club was taking into account all the success that Marcelo has had at the club.
The good times returned to Elland Road after three incredible campaigns with Marcelo as our head coach. He brought a winning mentality to the club.
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The moments created, particularly in the 2019/20 season and winning promotion to the premier league, will live long in the memories of myself and the fans.
I have to act in the best interest of the club and I believe a change is required now that we are in the top flight.
Recent results and performances have not met 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 final stages of the season.
Everyone at the club would like to thank Marcelo for his efforts and achievements and we wish him the best for the future.
Plans for a permanent tribute to Bielsa at Elland Road are under way, while they hope to make an announcement regarding the Argentine's successor as soon as Monday.
Tim Thornton is a Sky Sports News reporter.
There will be a lot of sadness among the fans. The majority of the fans wanted him to stay for the rest of the season.
He has created something unique, it has been an incredible journey and the fans didn't want to end in this way.
The goals conceded recently have been the tipping point for Leeds, who have been dropping down the table.
The style of football has been unbelievable for the fans to watch, but there was a feeling that something had to change. The decision was taken with a heavy heart.
I wouldn't be surprised if his name is sung around the ground for the rest of the season, he's a legend here and has united a whole city.
He has improved each and every member of the squad.
Marsch, a former American international, has been out of work since December, when he was fired by the team after only five months on the job.
The 48 year-old had taken over from his predecessor, who had left to become the coach of FCB, but last season's runners-up had dropped to 11th in the league, as well as losing three of their five group-stage games.
Before that, he had led Red Bull Salzburg to back-to-back domestic doubles in the Austrian top flight in his two seasons at the helm.
Tim Thornton said that Marsch would be a good fit. He plays the same style of football. He was only there for a short period of time and it didn't work out for him.
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It will be difficult for anyone to succeed him. I think the only way he will win the fans over is by getting results.
Speaking ahead of the Spurs loss, Paul Merson told Soccer Saturday that Bielsa was pulling the wool over people's eyes and that the fans of the club continued to support him despite their poor form.
He said that he was pulling the wool over people's eyes. He needs to change. He has to change it because his squad is not as strong as it could be. You can't keep going to games when you get beaten sixes and fours. You have to stop it. I really worry for them at the moment.
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The fans need to be stronger. Don't clap your team off. I would not be getting clapped off if I was beaten by four by Spurs at Highbury. Go home. I am not saying boo and throw shoes at them.
They have worked so hard to get to where they are in this league and at the moment it is not going well. I love watching Leeds, but I am not a fan of them and I am worried that there will be goal after goal, no matter what.