The Italian won the Premier League in his first season and the FA Cup in May, but the team missed out on Champions League qualification after a disaapointing season - finishing fifth.
This was expected - Roman Abramovich has proved in the past that he is not afraid to sack his managers.
Ex-Napoli manager Maurizio Sarri is expected to succeed his compatriot at Stamford Bridge.
Should Sarri be appointed, he would be Chelsea's ninth full-time manager since Roman Abramovich bought the club in 2003.
During three years with Napoli, Sarri did not won a major honour but guided the club to second, third and second again - behind Juventus in 2017-18.
The former Empoli manager was named Series A Coach of the Year in 2016-17.
Chelsea announced on Friday that Conte had "parted company" with the club, with a two-line statement that ended: "We wish Antonio every success in his future career."