Mendilibar took over from Joaquin Caparros in the close-season, but has paid the price for a poor start to the 2014-15 campaign.
In eight La Liga outings, Levante have won just once - a 1-0 success at Granada last month - and they currently lie second from bottom with five points to their name.
Levante have scored a league-low four goals in those eight games, and conceded 20, the most in the division.
A statement on the club's official website confirmed the news, before expressing thanks to Mendilibar for his time in charge.
"The board appreciates the professionalism shown by Jose Luis Mendilibar while at Levante, as well as his coach, Inaki Bea, and his trainer, Toni Ruiz; and wishes in the future all the luck at the professional and personal level," it read.
'Manchester United look confused about what they're being asked to do - he's certainly not getting the best out of them., I wouldn't bet a single penny on them getting to the next round' Alan Shearer issues damning verdict of Europa League hopes
'Pardew showed me a video of Shearer’s goals. Control, bam! Control, turn, bam! I was stunned, then said, "Give me that shirt, I always take number nine"': Newcastle cult hero recalls making confident move upon signing for Magpies 13 years ago
