He won 53.7% of his league games in charge, which is the highest of any Spurs manager since the Premier League era began in 1992.
But Villas-Boas had come under increasing pressure in recent weeks as his side struggled to keep pace with the top four in the league.
lost 6-0 to Manchester City
on 24 November and, despite a draw against Manchester United and wins at Fulham and Sunderland, the defeat by Liverpool proved the final straw for the Spurs hierarchy.
Villas-Boas fact file
Born in Porto on 17 October
Works as a trainee under Sir Bobby Robson at Porto
Achieves Uefa C coaching licence in Scotland
Becomes part of Jose Mourinho's staff at Porto
Follows Mourinho to Chelsea
Moves with Mourinho to Inter Milan
Appointed manager of Academica
Named Porto boss
Wins league, cup and Europa League in first season
Takes over at Chelsea, but is sacked in early 2012 after 40 games in charge
Replaces Harry Redknapp as manager of Tottenham Hotspur
Leads Spurs to a fifth place finish and to the last 16 of the Europa League in his first season in charge
Villas-Boas said he would not "resign" as
he was not a "quitter"
after the loss to the Reds but, after being summoned to a meeting with Spurs chairman Daniel Levy, his future was taken out of his hands.
"We wish Andre well for the future," added the Spurs statement. "We shall make a further announcement in due course."
The early names being linked with replacing the Portuguese include current Russia boss and former England manager Fabio Capello, ex-Chelsea manager Roberto Di Matteo, Swansea boss Michael Laudrup and Tottenham's current technical director Franco Baldini.
Former Tottenham playmaker and ex-England boss Glenn Hoddle has also been mentioned as a contender.
Former Spurs striker and BBC presenter
Gary Lineker tweeted:
"Would love to see Glenn Hoddle given another chance at this level. Has a brilliant football mind."
Italian Baldini, 53, helped oversee the club's transfer dealings during last summer when the club had to contend with the sale of Gareth Bale to Real Madrid
for a world record £85.3m.
Bale scored 21 goals last season as Spurs finished a point behind fourth-placed Arsenal to miss out on Champions League qualification.
Tottenham recruited Paulinho, Roberto Soldado, Nacer Chadli, Etienne Capoue, Christian Eriksen, Vlad Chiriches and Erik Lamela with the money from the sale of the Wales international but the team has been unconvincing so far this season.
Former Tottenham chairman Lord Sugar told BBC Radio 5 live: "The money was spent irresponsibly, in the sense that you can't just go and buy, quickly, seven players and shove them into a team.
"Was the team that bad, that he needed seven players immediately?
"If you take [Arsenal manager Arsene] Wenger for example, he has taken a lot of pressure at the early part of the season, but he has spent on somebody [Mesut Ozil] that he wanted to spend on, not just spending for the sake of spending."
Villas-Boas had only managed one win from his previous six home league games, with his side scoring just 15 goals in 16 top-flight matches.
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