Spurs released a statement confirming the exit of Conte, whose future had been the subject of intense speculation since hitting out at his players the previous weekend.
Conte called his players "selfish" after squandering a two-goal lead in a 3-3 draw with bottom side Southampton, while questioning the club's lack of success during Levy's time as chairman.
Tottenham exited the FA Cup and Champions League this month, stretching its wait for a trophy into a 16th year, with a top-four finish in the Premier League now its only target.
Conte's assistant Cristian Stellini will oversee Spurs' remaining 10 league games, starting with a trip to Everton on 3 April and Levy is hoping for a strong finish to the campaign.
"We have 10 Premier League games remaining and we have a fight on our hands for a Champions League place," he said. "We all need to pull together. Everyone has to step up to ensure the highest possible finish for our club and amazing, loyal supporters."
Spurs still have top-four rivals Manchester United, Newcastle United and Liverpool to face in their remaining fixtures.
Fourth-place Tottenham are two points better off than Newcastle and seven in front of Liverpool, but both sides have two games in hand.