The decision comes a day after Spurs were thrashed 6-1 at Newcastle - a performance chairman Daniel Levy has described as "wholly unacceptable".
Stellini, was appointed on 26 March after Antonio Conte's 16-month spell as Spurs boss came to an end.
Ryan Mason, who worked under Stellini and took charge when Jose Mourinho was sacked in 2021, succeeds him.
Sunday's defeat at Newcastle, where they trailed 5-0 after 21 minutes, was a significant blow to Spurs' hopes of securing Champions League qualification.
"It was devastating to see," added Levy.
"We can look at many reasons why it happened and while myself, the board, the coaches and players must all take collective responsibility, ultimately the responsibility is mine."
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