The Indiana Pacers announced Wednesday that Rick Carlisle will not return as head coach, but will have the option to return to the team in another capacity.

In four seasons as Pacers coach, Carlisle compiled a 181-147 record (.552 winning percentage). The Pacers made the NBA playoffs in three of the four seasons and reached the Eastern Conference Finals in Carlisle?s first year, 2003-04. That same season, the Pacers posted a 61-21 record, the best in franchise history.

?Rick?s contributions to this franchise, first as an assistant coach, then as a head coach, have been tremendous,? said President of Basketball Operations Larry Bird. ?This is a mutual decision and we?re happy that Rick will consider remaining with the franchise.?

?My wife, Donna, and I are very grateful to have had the opportunity to be part of a great organization like the Indiana Pacers for seven of the last 10 years,? said Carlisle. ?We wish to thank Mel and Herb Simon, Larry Bird, Donnie Walsh and our players for a great experience. This is a class organization with great leadership and a loyal fan base that?s second to none.?

The Pacers? search for a new coach will begin immediately.

The Pacers suffered a disappointing season with a bad second half that saw them drop out of the playoffs.