The club said: "We can announce agreement has been reached with head coach, Andre Villas-Boas, for the termination of his services.
"The decision was by mutual consent and in the interests of all parties. We wish Andre well for the future."
The Portuguese coach, who took over in July 2012, had been under pressure after Spurs lost 6-0 to Manchester City last month, having spent a huge amount on transfers during the close season.
After the 5-0 White Hart Lane humiliation by Liverpool, which followed a the drubbing by Manchester City, Villas-Boas had insisted that he would not quit.
The 36-year-old said: "The call to make that decision is not mine, because obviously I won't resign and I'm not a quitter.
"The only thing I can do is work hard with the players to get them back on track.
"This is a top-four squad but in our Premier League form we are not there.
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