Fabio Capello, Glenn Hoddle and Southampton boss Mauricio Pochettino have emerged as contenders for the position in the longer term but Sherwood, who is already on the coaching staff at White Hart Lane, is set to be in charge for the Capital One Cup quarter-final at home against West Ham on Wednesday.
His interim role could be extended for a longer period depending on the club's search for a permanent successor.
In a short statement, Tottenham said: "The club can announce that Tim Sherwood, Chris Ramsey and Les Ferdinand will take charge of the first team whilst the club progresses discussions. Steffen Freund and Tony Parks continue as part of the coaching staff.
"Jose Mario Rocha, Luis Martins and Daniel Sousa leave the coaching staff and we wish them well for the future."
Villas-Boas' spell as Tottenham manager came to an abrupt end after the club announced the 36-year-old had been sacked, a day after Spurs' 5-0 home defeat to Liverpool.
That result, which followed a 6-0 drubbing by Manchester City last month, appears to have been the final straw for the Spurs chairman Daniel Levy who delivered the coup de grace in person at the club's training ground in Enfield.
Tottenham said in a statement: "The club can announce that agreement has been reached with head coach, Andre Villas-Boas, for the termination of his services.
"The decision was by mutual consent and in the interests of all parties."
Bookmakers have installed Capello as the early favourite. Although he is currently Russia's head coach and due to take them to the World Cup finals, Franco Baldini, his former assistant at England, is Spurs' technical director, and Capello was at White Hart Lane on Sunday commentating for Italian television.
Other names linked with the post include former Tottenham striker Jurgen Klinsmann, currently coach of the USA, and a possible return for Hoddle.
He was in charge at Spurs between 2001 and 2003 but has not been in club management since Wolves in 2006, but Gary Lineker was among those backing the former England boss.
Lineker said on Twitter: "Would love to see Glenn Hoddle given another chance at this level. Has a brilliant football mind."
There are also whispers that Southampton's Pochettino, who has been hugely impressive at St Mary's, has also attracted Levy's admiration though he is known to be fiercely loyal to Saints chairman Nicola Cortese.
Guus Hiddink's agent has ruled the Dutchman out of the running - he is taking over as Holland coach after the World Cup.
Swansea boss Michael Laudrup's agent has also insisted the Dane is committed to staying at his club until the end of the season.
Spurs are currently seventh in the table, two points ahead of Manchester United, and won their Europa League group with a 100 per cent record, scoring 15 goals and conceding just two in six games.
Villas-Boas also had a good record overall as Tottenham manager, averaging 1.83 points per league match, and a win ratio of more than 53 per cent, the highest of all Spurs bosses in the Premier League era.
Source: PA
Source: PA