Will Muschamp will not return as Florida's coach next season, the school announced Sunday.
Muschamp will coach the team's final two games this season, and then step down. Muschamp's buyout will work out to about $6.3 million, a source with knowledge of the terms confirmed to ESPN.com's Darren Rovell.
"I was given every opportunity to get it done here and I simply didn't win enough games -- that is the bottom line," Muschamp said in a statement. "I'm disappointed that I didn't get it done and it is my responsibility to get it done.
"I have no bitter feelings, but this is a business and I wish we would have produced better results on the field."
Muschamp is 27-20 in four seasons, 17-15 in SEC play.
Saturday's 23-20 overtime loss to South Carolina was the Gators' sixth in their last eight home games.
Last year UF lost eight starters to season-ending injuries and finished 4-8, the Gators' first losing season since 1979.
"Upon evaluation of our football program, we are not where the program needs to be and should be. I've always said that our goal at the University of Florida is to compete for championships on a regular basis," Florida athletic director Jeremy Foley said in a statement.
After the 2010 season Muschamp, then Texas' defensive coordinator and head coach in waiting, was hired at UF to replace Urban Meyer. After Muschamp's 7-6 debut season, UF went 11-2 in 2012, reaching as high as No. 2 in the AP Poll.
Just two weeks ago, UF upset Georgia 38-20, marking Muschamp's first victory in four tries as a head coach against his alma mater.
ESPN.com's Darren Rovell contributed to this report.