The seven-man SFA board had been deliberating for several days over whether the former Hearts and Dundee United manager should keep his job after a poor start to the World Cup qualifying campaign, with Scotland sitting bottom of their group with two points from four matches.
Though there has not been any official confirmation as yet, it is believed Levein is no longer Scotland manager and former Middlesbrough and Celtic manager Gordon Strachan has already been made favourite to replace him.
Levein's contract ran until 2014 and it is reported that sacking him will cost in the region of £700,000.
Scotland face Luxembourg in an away friendly on November 14 and do not have another qualifier until hosting Wales on March 22.
They are due to announce their squad for the Luxembourg match on Tuesday.