The loss at Elland Road was their fourth defeat in five matches – a disastrous run in which they conceded 20 goals and slid towards the relegation zone.
The 66-year-old Argentinian believed he could turn things around after the Spurs loss, but the Leeds board disagreed.
Former RB Leipzig boss Jesse Marsch is favourite to replace Bielsa.
The club said they hope to announce their new manager Monday.
In a statement, the club said: “Leeds United can today confirm the club have parted company with Head Coach, Marcelo Bielsa.
“The 66-year-old was in charge of the team for over three-and-a-half years, having taken the reins in June 2018.
“He transformed the club’s fortunes on the pitch, which began with the 3-1 demolition of Stoke City at Elland Road two months later and he led Leeds to the Championship play-offs in his first full season in charge.
“In his second campaign Bielsa succeeded where those before him had failed, guiding the club to the Championship title, winning the division by 10 points, and resulting in promotion back to the Premier League for the first time in 16 years.
“On the club’s return to the top-flight, Leeds finished ninth, securing the highest points tally by a newly promoted side in the Premier League since the 2000/01 campaign. However, this season has proved to be difficult and the team has recorded just five Premier League wins.”
Chairman Andrea Radrizzani said he was forced to act due to the club’s worsening record in the Premier League.
“This has been the toughest decision I have had to make during my tenure at Leeds United, taking into account all the success Marcelo has had at the club.
“With Marcelo as our head coach, we had three incredible campaigns and the good times returned to Elland Road. He changed the culture of the club and brought a winning mentality to us all.
“The moments created, particularly in the 2019/20 season and winning promotion to the Premier League, will of course live long in all our memories, myself and the fans included.
“However, I have to act in the best interest of the club and I believe a change is required now in order to secure our Premier League status.”
