"We made the difficult decision to part ways with Scott Pioli and allow him to pursue other opportunities," Chiefs Chairman and CEO Clark Hunt said in a statement on Friday.
Pioli, 47, was Kansas City's general manager for four years and helped assemble a team that won the 2010 AFC West title before slipping to a 2-14 mark this season that will give the Chiefs the number one overall pick in the 2013 NFL Draft.
"The bottom line is that I did not accomplish all of what I set out to do," Pioli said in a statement. "I truly apologise for not getting the job done."
Kansas City went a cumulative 23-41 under Pioli's tenure.
Reid, dismissed after 14 seasons as Philadelphia head coach on Monday following a 4-12 record, is widely reported to be poised to replace Kansas City's fired head coach Romeo Crennel.