The club said the decision was "by mutual consent" although after Villas-Boas said he would fight on following Sunday's loss, the move will be widely seen as a sacking.
A statement from the club on Monday morning read: "The club can announce that 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.
"We shall make a further announcement in due course."
The Portuguese leaves with the White Hart Lane club seventh in the Premier League table, eight points off top spot and five outside the top four.
I don't think a club as big as Spurs would sack the manager without having somebody in mind to replace him.
Former England boss Fabio Capello was immediately installed as the bookie's 4/1 favourite for the post after he was pictured at yesterday's game.
Mind you, I won't just go off that assumption - Mike Ashley was there too (watching his beloved Spurs) but I don't think he will be in the running.
The bookmaker's other early contenders include Swansea chief Michael Laudrup, Guus Hiddink, Tim Sherwood and ex-boss Glenn Hoddle.