"Steve completed the job he was brought in to carry out, to keep the team in the Championship, and his hard work here has been greatly appreciated," chairman Massimo Cellino said in a statement on Tuesday.
"We have however decided that a different approach is required in order to achieve our targets for the new season."
Italian owner Cellini has now gone through six managers since he bought Leeds in April 2014. Former Rotherham United boss Evans was appointed in October to replace German Uwe Rosler.
Cellini was nicknamed "coach eater" after going through 36 of them in 22 years while he was owner of Italian club Cagliari.
"The club is now looking to appoint a new head coach to build on the good work of Steve and (assistant) Paul (Raynor) and deliver the special season which our supporters deserve," said the owner who once said he wanted a coach for 10 years.
Former European Cup finalists Leeds, who were 13th in the 24-team second tier last season, were relegated from the Premier League in 2004 and dropped into the third tier in 2007.
The club's heyday was in the 1960s and 1970s under Don Revie when they won the top-flight twice and were runners-up five times, as well as winning the FA Cup and League Cup.
Leeds lost to Bayern Munich in the 1975 European Cup final under Jimmy Armfield after Revie had left to manage England.
(Writing by Ken Ferris; Editing by Tony Jimenez)
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