Smith told reporters he was no longer coach as he left a meeting Wednesday with Memphis President M. David Rudd and athletic director Tom Bowen.
Memphis issued a statement saying only that an agreement of "separation" had been reached in the best financial interest of the university with details still to be finalized.
Smith went 40-26 at Memphis, including 21-13 this season. The Tigers won seven of their final nine games before losing Saturday 70-60 to No. 8 Cincinnati in the American Athletic Conference Tournament semifinals, their third loss to the AAC champs this season.
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