Gillispie left Texas A&M in 2007 and agreed to a seven-year deal to coach the Kentucky basketball team. He was fired after just two years on the job.
The newspaper reported his lawsuit, filed in U.S. District Court for the Northern District of Texas, alleges both breach of contract and fraud. The newspaper also said Gillispie never signed a formal contract with the school.
He is seeking $6 million in back pay for "termination without cause." He also is asking for a jury trial in Dallas.
The Wildcats went 22-14 during the 2008-09 season and missed the NCAA Tournament for the first time in 18 years. Kentucky made it to the quarterfinals of the NIT before losing to Notre Dame.
Gillispie has a career record of 140-85 in seven years as a college head coach. He began his head coaching career at Texas-El Paso, where he spent two seasons before starting a three-year tenure at Texas A&M.
After Gillispie's dismissal at Kentucky, the Wildcats hired John Calipari away from Memphis.