Spurs chose to exercise a break clause in Tim Sherwood's 18-month contract to end his tenure as head coach.
“We agreed an 18-month contract with a break clause at the end of the season and we have now exercised that option," chairman Daniel Levy said in a statement.
"On behalf of the Club, I should like to state our thanks for all his efforts during his years with us. We wish him great success in his managerial career."
Levy said the club would now find a new head coach who can "inspire the kind of performances that we associate with" Spurs.