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INDIANAPOLIS — The Indiana Pacers said Wednesday they have relieved head coach Nate McMillan of his coaching duties.

The team announced Aug. 12 that it had signed McMillan to a contract extension, but did not disclose the details of the deal.

“On behalf of the Simon family and the Pacers organization, I’d like to thank Nate for his years with the team,” said Pacers President of Basketball Operations Kevin Pritchard. “This was a very hard decision for us to make; but we feel it’s in the best interest of the organization to move in a different direction.”

McMillan took over coaching duties of the Pacers prior to the 2016-2017 season. In his four years with the team, he led them to a 183-136 record, including 3-16 in the Playoffs.

McMillan’s 183 wins as head coach of the Pacers is third-most in the team’s NBA history.

The Pacers said the search for a new coach will begin “immediately.”