The former Blackpool coach joined Leeds from neighbours Huddersfield in December and, alongside head coach Neil Redfearn, has overseen the club losing just three league games this year.
The club said in a statement: "Director of football Nicola Salerno has suspended the assistant coach Steve Thompson from his duties at the club.
"This is an internal matter and the club will make no further comment."
Leeds, who face Blackburn Rovers at Elland Road on Saturday, are currently 13th in the Championship.
Source:BBC
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