Leicester will not renew Michael Cheika's contract at end of the season, the English rugby club confirmed.
The former Wallabies coach, 57, joined the club last year on a one-year contract after fellow Australian Dan McKellar parted ways with the team.
The decision comes a week after Leicester was hammered 80-12 by Toulouse in the Champions Cup.
Cheika said after the loss the result had pushed back contract talks and the reason why he had only signed a one year deal due to a decade away from the week-to-week demands of club rugby, as well as the speed of the appointment.
Tigers chief executive Andrea Pinchen said Cheika's departure was a blow to the club but not totally unexpected.
Michael Cheika will not coach Leicester next season. Getty
Pinchen declared the club has been diligent in finding the next coach knowing Cheika's deal was a short one.
"While disappointed, given the positive influence Michael has had since joining us in the summer, we were always aware of this being a one-year deal and we have been transparent with players, staff, and supporters on that point," Pinchen told the club website.
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"As we have said throughout Michael's tenure, we would have liked to have extended his time in the head coach role but understand why that can't happen."
Pinchen added: "Knowing it was a one-year contract, the club has been running a recruitment process to find a suitable head coach replacement.
"It goes without saying that Michael is fully committed to seeing out his time as head coach in a successful way, determined to add silverware to the trophy cabinet at Mattioli Woods Welford Road, and we are excited about what remains in this campaign."
Cheika has the Tigers in fourth position on the premiership table, with six wins and five losses but has also suffered record-breaking defeats during his time at the club
On top of the massive loss to Toulouse ,which was Leicester's heaviest in that competition, they were beaten 54-24 by Bristol in a premiership game in December, a record amount of points given up at home.
The Tigers are now searching for their ninth coach in as many years, with celebrated former Leicester prop and ex-Munster head coach Graham Rowntree earmarked as the next man up.
