With retirement, Levy was given a coaching position in one of Maccabi Haifa's youth teams. After two years in the youth department, he was made assistant manager of the first team, under the management of Eli Cohen. Cohen resigned his position in the last stages of the 1999–2000 season, and was replaced by Levy for a few games. At the end of the season, Levy returned to the youth department, this time as head coach of the first youth team for the next three years, where he was very successful, making both cup and league titles in his last year there.