The Foxes have relieved Shakespeare of his duties following a disastrous start to the season.
Shakespeare held talks with Leicester’s hierarchy today and was informed the club had decided to dismiss him.
Leicester have won just three matches this term, with two of those victories coming in the Carabao Cup.
Leicester sit third bottom and have recorded just one win in the league from their opening eight matches.
The 53-year-old was only named permanent manager of the Foxes in June but has now been given his marching orders.
His last game in charge saw Leicester record a 1-1 draw against West Brom last night.
Leicester fell behind to Nacer Chadlis’ free-kick and had to rely on Riyad Mahrez to snatch them a point in the final moments of the game.
Shakespeare had been with Leicester as an assistant coach between 2008 and 2010 before spending a season at Hull.
He returned to the club in 2011 as an assistant once again and worked under Nigel Pearson and then Claudio Ranieri.
Following the Italian’s shock departure in February this year, Shakespeare took the reins as caretaker and helped keep them up.
He was made permanent manager in June and signed a three-year deal.
But following Leicester’s poor start to the campaign the former West Brom player has been given the boot.
Gary Lineker tweeted his discontent at the news of Shakespeare’s sacking.
Lineker said: “Craig Shakespeare sacked by Leicester. Bring back Claudio.
“Was always a miracle, but it’s even more remarkable really that Leicester won the league given the ineptitude of those that run the club.”
Sky Sports claim Nigel Pearson is not being considered as Shakespeare’s replacement.
Next up for Leicester is a trip to Swansea on Saturday (3pm).