Former Manchester United and Real Madrid striker Van Nistelrooy joined Leicester in November with the side struggling in 16th place in the table. They ended the campaign in 18th.
The 48-year-old won his first match in charge but was unable to turn Leicester’s season around, winning only five matches during his tenure as they finished 13 points from safety and returned to the Championship.
“Ruud has overseen a challenging period for the club,” Leicester said in a statement.
“[He] moves on with the respect and thanks of everyone at the football club for his dedication and hard work, and with our very best wishes for the future.”
Regarded as one of the Premier League’s best strikers ever, Van Nistelrooy previously led PSV Eindhoven to the Dutch Cup as manager before joining compatriot Erik Ten Hag’s United staff as an assistant coach.
He served as interim coach at Old Trafford after Ten Hag was fired, until new manager Ruben Amorim took charge.
“I would like to personally thank the Leicester City players, coaches, academy and all the staff I have worked with for their professionalism and dedication during my time at the club,” Van Nistelrooy said in a statement.
The first-team coaching staff will oversee the start of pre-season until a new manager is appointed, Leicester added. (Reuters)