The 68-year-old Allardyce arrived at Elland Road with hopes of extending Leeds' stay in the Premier League for a fourth consecutive season.
However, despite spirited performances against Manchester City and Newcastle United, Leeds suffered three defeats and managed only a draw under Allardyce's leadership, ultimately sealing their relegation on the final day of the season.
There were initial hints from Allardyce that he would be willing to remain in charge next season and oversee Leeds' quest for an immediate return to the top flight.
Nevertheless, after discussions between Allardyce and the club hierarchy, it was decided to part ways with the former England boss.
In an official statement, Leeds United said, "Leeds United and Sam Allardyce can confirm that both parties have mutually agreed for Sam's spell at the club to end following the completion of the 2022-23 season. Sam joined the Whites for the final four games of the campaign, and despite spirited performances against Manchester City and Newcastle United, the objective of staying in the Premier League was not reached."
#LUFC and Sam Allardyce can confirm that both parties have mutually agreed for Sam’s spell at the club to end following the completion of the 2022/23 season— Leeds United (@LUFC) June 2, 2023
Allardyce, who had been out of football since West Bromwich Albion's relegation from the Premier League in 2020-21, faced criticism for his comments comparing himself to esteemed managers Pep Guardiola and Jurgen Klopp during his introductory press conference at Leeds.
Reflecting on his time at Leeds, Allardyce stated, "It has been an honour to manage Leeds United, a great club with an incredible fan base, who deserve to be in the Premier League. At this stage in my career, I am not sure taking on this challenge, which is potentially a long-term project, is something I could commit to, but I wish the club every success for the future and hope the club returns to the Premier League, where they belong."
Leeds United CEO Angus Kinnear expressed gratitude to Allardyce, stating, "We thank Sam for being brave enough to step in and do all he could to save us. Sadly, it was not to be, but Sam, Karl (Robinson), and Robbie (Keane) did everything they could to lift the mood at Thorp Arch and Elland Road, and for that, we are all extremely grateful."