Yahoo! Sports reporting that Karl has parted company with franchise.
The Denver Nuggets have confirmed that they have parted company with recently crowned Coach of the Year George Karl, as per their official website.
The news comes just days after Executive of the Year, general manager Masai Ujiri, left the franchise to take the same role at the Toronto Raptors.
Despite guiding Denver to a 57-25 season, Karl has been let go as coach after an agreement could not be reached over a contract extension.
Karl had one year left on his current deal, but ownership were not willing to extend his stay which has led CEO Josh Kroenke to make the decision to go their separate ways instead of a year full of discontent.
However, as noted in their official statement, Karl had only managed to advance past the first round of the playoffs once during his time in Denver, reaching the Western Conference finals in 2009.
Speculation claims the Nuggets will move quickly in their search for a replacement, and are eyeing Memphis Grizzlies coach Lionel Hollins and Indiana Pacers associate head coach Brian Shaw as ideal contenders.
However, it leaves Denver in a tricky situation as they look for a new front office and coaching staff ahead of next season, but it does give them plenty of time to find the right candidates.
Denver finished third in the Western Conference this season, but fell at the first hurdle in the playoffs, crashing out to the Golden State Warriors.
The 62-year-old coach has a .599 winning percentage, recording 1,131 victories in his time as an NBA head coach, and will likely have offers this off season with several franchises looking to make changes at the top.