The television personalities each posted a picture of them together along with a joint statement explaining their decision to split.
"After these 5 wonderful years we had together, we decided we have two different goals and made the decision to call off the engagement," they each wrote on their respective Instagram accounts. "We love each other very much, but we aren't in love anymore. We want nothing but the best for each other so please keep any thoughts positive. Sending Love."
According to People Magazine, the former couple called off their engagement while filming the season 9 reunion of Vanderpump Rules in Los Angeles on Friday.
An insider revealed the Bravo cameras captured the moment Leviss returned the engagement ring during the taping. She was later seen without the sparkler at a dinner in the evening.
In May, Kennedy proposed to Leviss in a Coachella-themed proposal. The DJ decided to pop the question after the pair had been dating on and off for five years.
Leviss, who appeared to be delighted by the event, shared the news to her fans via Instagram.
"James proposed at the iconic Empire Polo Fields of 'RACHELLA' Friday night... and I said YES! I'm over the Coachella moon," she captioned a series of photos from the evening.
Meanwhile, Kennedy also posted an image from their special moment, writing, "THE LOVE OF MY LIFE, said yes," followed by a ring and heart emoji.
Prior to the engagement, Kennedy had already expressed his desire to marry Leviss. He gushed about his feelings during an episode of Overserved with Lisa Vanderpump after his former employer told him, "You won't find anyone else that's more on your side than that girl."
He responded to the comment by saying, "Well, can you keep a secret?... I love Raquel so much. You know that. She really has helped me, and you've seen everything she's stuck by me with. I really couldn't imagine myself with anyone else on this planet. There's no 'buts' - I think I'm going to ask her to marry me."
The couple first met in 2016 at a New Years' party, and it had never been a dull moment since. The pair had gone through quite a journey throughout their relationship, including when Kennedy was accused of cheating on Leviss while being on the show.
Kennedy, who had been open about his battle from addiction, was also fired from his job at SUR Restaurant due to behavioral issues.