The club are also preparing to bring on board former England boss, Sam Allardyce as his replacement while the Director of football, Victor Orta, is set to exit the club.
Gracia joined Leeds on a “flexible contract”, but the board is considering bringing in former Bolton, West Ham and Everton manager Allardyce.
Gracia, who was appointed in February to man the club has only won three of 11 league games in charge.
The club also lost four of their past five matches and are currently occupying the 17th position in the Premier League.
Leeds will be facing Manchester City on Saturday in the ongoing EPL matches.
Allardyce, 68, has been out of work since the 2020-21 season ended when his West Brom side were relegated from the Premier League, the first top-flight relegation of his career.
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