Levi was appointed head of the Central Command staff in 1973 and served as head of the operations department of the General Staff in 1974. In 1976, he commanded the 880th Reserve Armored Division, and was appointed head of Central Command in 1977, serving in this position until 1981. Levi served as Deputy Chief of Staff and head of the Operations Division from 1982 to 1983. During his tenure, the First Lebanon War broke out and he took an active part in the management of the war alongside Chief of Staff Rafael Eitan.