Chelsea agreed a compensation package which could be worth up to £9million with Conte, who had one year left on his contract.
It hasn't been the most productive pre-season at Stamford Bridge with the uncertainty over the coaching position clouding much of the summer, and Antonio Conte has now officially been dismissed by Chelsea as Maurizio Sarri waits to be appointed.
"Chelsea Football Club and Antonio Conte have parted company", the club said in a statement.
"We wish Antonio every success in his future career".
The Blues' non-World Cup players are expected to return to the Cobham training ground this weekend for fitness tests and body fat appraisals.
The 59-year-old helped establish Napoli as a major threat in European competitions with the club finishing just four points behind Juventus last season.
After months of speculation, Antonio Conte is no longer Chelsea manager. All managers at Chelsea know that trophies but sometimes even that isn't enough as some have found out to their cost but ine thing we do know is that Sarri will do it his way, or the highway.
Conte regularly questioned the club's ambition and dealings in the transfer window and departs after failing to guide the Blues into next season's Champions League. Sarri and Higuain worked together at Napoli.
Conte's volcanic intensity also alienated some insiders, including leading players whose discontent filtered out.
Incredibly the club have released a statement thanking Conte for his services to the club, but the message only consisted of 52 words.