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.
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