Inter Milan chief executive officer Ernesto Paolillo has confirmed that Leonardo has left his post as manager of the Serie A giants.
Leonardo has been linked with a move to Ligue 1 outfit Paris Saint-Germain over the past week in a role that would see him likely to take up a position as general manager of the club.
And that move now seems more likely after Paolillo's comments on Friday stated that the club are now looking for a new coach.
His revelation means Inter will now be on the hunt for their third manager in just over a year.
After Jose Mourinho left the San Siro outfit after winning a treble with the club in the 2009-10 season, an extensive search saw former Liverpool manager Rafael Benitez appointed.
But the Spaniard struggled and was sacked in December, with Leonardo drafted in as his replacement.
Former Roma boss Claudio Ranieri has already been mooted as a potential candidate to replace Leonardo.
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