"For many years now, not just for the time I have been here, this club has failed to achieve a League position commensurate with the financial investment that has been made in the team," said Spurs Chairman Daniel Levy.
"Quite clearly we are operating in an international market and it is vital that we put in place an appropriate management infrastructure and expertise to achieve our aspirations. It is important that we have stability and a consistent strategy for first team and youth development.
"I firmly believe that this can be best served under a new continental structure and that Frank Arnesen is immensely qualified to oversee this for us.
"I would like to thank David for his contribution to our club over the years. I think it is too easy in the business of football to forget to give credit where it is due and David has brought young players to this club who have gone on to establish themselves in the first-team squad."