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Cifuentes’ exit means Leicester are now searching for their sixth permanent coach since the sacking of FA Cup-winning Foxes boss Brendan Rodgers in April 2023.
Inconsistent results defined Cifuentes’ time coaching at King Power Stadium.
They have achieved back-to-back league wins just twice this season, while their longest unbeaten run was an eight-game winning streak between late August and mid-October which included five draws.
Leicester are 13 places and 31 points behind Enzo Maresca’s title-winning side at the same stage of the 2023-24 season.
Chairman Srivaddhanaprabha added: “I believe this is the right step at this time to improve performance and results, and act in the best interest of Leicester City Football Club.”
“Marty leaves with our thanks and best wishes for the future.”
Leicester say first-team coach Andy King will take charge on an interim basis, pending the appointment of a permanent replacement.
The Foxes’ next match in the tournament will be at home against Charlton Athletic on Saturday.
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