The Pistons said Tuesday that President of Basketball Operations Joe Dumars relieved Brown of his duties after the team and the Hall of Fame coach came to a resolution on his contractual situation.
Dumars said the search for a new Pistons' head coach has already started.
Brown's agent, Joe Glass, told The Detroit News that the Pistons fired Brown. But the Pistons said the coach was offered a buyout package based on the final three years and $18 million that was left on his contract.
Brown, 64, signed a five-year, $25 million contract with the Pistons two years ago. He directed Detroit to the NBA Championship in 2004. The Pistons lost the finals in seven games to San Antonio this past season.
Brown has coached the Philadelphia 76ers, Denver Nuggets, Indiana Pacers, Spurs, Los Angeles Clippers, New Jersey Nets and the ABA's Carolina Cougars. He also was head coach at UCLA and the University of Kansas, where he won the National Championship in 1988.