Pearson saved the club from relegation by leading them to a late run of victories when they had seemed doomed, in one of the greatest season comebacks in Premier League history.
The manager had a reputation for at times being abrasive with the press, but won admiration for keeping the Foxes up, as did Leicester for sticking by him when many clubs would have pressed the panic button.
Leicester stated on their official website that the working relationship between Pearson and his superiors was 'no longer viable.'
Former Leicester striker, fan, and Match of the Day host Gary Lineker reacted on Twitter with dismay to the news.
Leicester City have sacked Nigel Pearson! Really? WTF! Could you kindly reinstate him like the last time you fired him?— Gary Lineker (@GaryLineker) June 30, 2015
It was believed midway through the season that Leicester were to get rid of Pearson but reports, fortunately, appeared to be premature.
His relationship with the club will not have been helped after his son James Pearson was sacked from his academy contract, as reported The Mail, after an off-season video emerged in Thailand in which he and two other players were accused of bringing the club into disrepute.