Queens Park Rangers have suspended manager Ian Holloway because of speculation linking him with the vacant manager's job at Leicester City.
Ian Holloway could now take over at Leicester City
"QPR has not sacked Ian," chairman Gianni Paladini told the club website.
"But we are concerned about recent performances and the effect speculation about Ian joining Leicester City might have on the players."
Leicester denied Holloway's arrival and said: "The process of finding a new manager is still taking place."
A spokesman added: "We won't be commenting on speculation.
"There is no timescale for when we will appoint a new manager."
Holloway has been placed on "gardening leave" by QPR with recent bad results also contributing to his downfall.
Rangers have slumped to 15th in the Championship table and Holloway has faced mounting criticism from fans.
He was told by Paladini on Sunday night that he was being relieved of his duties at Loftus Road whether or not he lands the Foxes job.
Rangers will now try to work out a compensation package with the ex-Bristol Rovers chief, who signed an improved contract last year.
And, with Holloway facing competition for the Leicester job from caretaker boss Rob Kelly and Luton's Mike Newell, the west London club have suspended him on full pay along with coaches Tim Breacker and Gary Penrice.
QPR coach Gary Waddock has been placed in temporary charge.
Paladini added: "I hope we can sort something out with Ian as soon as possible.
"QPR will always be enormously grateful for the contribution he has made for the past five years, in particular gaining promotion for us in 2004.
"However, it is crucial the team are focused and able to move forward, which is why we have appointed Gary as caretaker manager."
Waddock was a hugely popular figure in his playing days at QPR and is credited with improving the club┐s youth system in recent years.
The former Republic of Ireland midfielder is likely to be assisted by youth coach Joe Gallen - brother of club captain Kevin - for this Saturday's game against Millwall.
Paladini is also keen to install ex-Rs boss Jim Smith as director of football.
Smith led QPR between 1985 and 1988 and has since managed Newcastle, Portsmouth and Derby.