Sky Sports have suggested that the Foxes have relieved Pearson of his duties in the wake of Saturday's 1-0 loss to Crystal Palace at the King Power Stadium.
The defeat left Leicester sitting on the bottom of the Premier League table, four points from safety, with just 17 points from 24 matches.
Pearson, who had an initial spell with the Leicestershire outfit from 2008 to 2010, returned to the club in November 2011 and guided the Foxes to the 2013/14 Championship title.
There has yet been no official statement on the reported sacking of Pearson released by Leicester City FC but Sky reporter Rob Dorsett suggested the following.
"My sources have confirmed to me that Leicester City have sacked Pearson this afternoon and the hunt for a new manager begins immediately," he said.
"Defeat at home to Crystal Palace on Saturday was a killer blow to Nigel Pearson and I think you have to add to that the incident with James McArthur on Saturday, a bizarre incident that a lot of people saw.
"Leicester's owners have taken the view with the club rooted to the bottom of the table with 14 games to go that it is time for a change. You cannot underestimate the impact of the incident with McArthur where he was knocked over accidentally by McArthur and Pearson reacted by pretending to throttle him."
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