Troubled English premier league side Leeds United has parted ways with coach Peter Reid, the club said on Monday in a statement.

"Following a meeting today between Trevor Birch, the chief executive, and Peter Reid, it has been mutually agreed that Peter steps down as first team manager with immediate effect,"said the statement.

"While the board acknowledges that Peter did a sterling job for the club towards the end of last season in keeping United in the FA premier league, it believes it must not allow this season to reach a point beyond which the club's premiership status comes under serious threat.

"The recent run of results has clearly been unacceptable. The board therefore concluded that it has a duty to act now,"it said.

Former player Gray is taking over as caretaker manager, replacing Reid, who has been in charge since March of the heavily in-debt club.

Leeds is now lying at the bottom of the premier league standings with eight points from 12 games.

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