Conte's three-year deal with the Blues has been cut short, with former Napoli boss Maurizio Sarri set to replace him.
"Chelsea football club and Antonio Conte have parted company", read a statement on the club's official website.
Conte led Chelsea to a brilliant title triumph in his first year after inheriting a team that finished 10th the previous season.
"We wish Antonio every success in his future career".
The Italian's main gripe for the past year was Chelsea's failure to land the signings he really wanted for its Premier League title defense.
Conte - who had a year to run on his contract - is seen to have contributed to his own demise by falling out both with the players and the board as the sheen of the title victory quickly disappeared.
"Thank you boss. Great man, great manager".
Nearly every top-class manager, available and unavailable, has been linked with Conte's job but in the past month or so, Maurizio Sarri has become the hot favourite.
The Italian has taken most of his backroom staff with him with only Paolo Bertelli, Carlo Cudicini and goalkeeping coach, Gianluca Spinelli, considering staying at Chelsea for the coming season.
Former Spain manager Julen Lopetegui was appointed instead.
Chelsea legend Gianfranco Zola and Giovanni Martusciello are expected to join Sarri's backroom staff while Italian-Brazilian midfielder, Jorginho, is now undergoing a medical at Cobham and will also follow Sarri from Naples to London.
Two trophies in two seasons but the writing was on the wall.
Sarri has also presented a list of players he would like to sign.