ORLANDO, Fla. — Steve Clifford will not return for a fourth season as head coach of the Orlando Magic, the team announced Saturday.

The decision came in a mutual agreement “to part ways,” the team said.

Clifford, 59, had one year remaining on his contract.

“We would like to thank Steve for his contributions to the Orlando Magic,” Jeff Weltman, the Magic’s president of basketball operations, said in a news release on Twitter. “We appreciate the many sacrifices he has made as our head coach and understand the timeline of our new path does not align with his goals as a head coach in our league.”

Weltman met with the media later Saturday and said the decision came out of discussions about the team.

"I also respect Cliff for the fact that he can assess where he is in his career," Weltman said. "And obviously, we repositioned our team. And so there has to be alignment in everything you do in this league. If there isn't alignment, you'll undermine everything."

With the move, the Magic join the Portland Trailblazers and Boston Celtics as teams conducting searches for a head coach. The Blazers and coach Terry Stotts announced a parting of ways Friday after Portland lost to the Denver Nuggets in the first round of the playoffs, and former Celtics coach Brad Stevens was promoted to president of basketball operations when Danny Ainge stepped down. Nate Bjorkgren's future as the Indiana Pacers coach also has been questioned.

Weltman told reporters that he doesn't have a predetermined idea of who he will hire to replace Clifford and would not discuss specific candidates. He said he just will look for the right person for the Magic's job.

Speculation on Clifford's replacement immediately turned to Stotts, who led the Portland Trail Blazers to eight consecutive playoff appearances before the team announced his departure this week.

Calls on social media touted former Magic All-Star guard Penny Hardaway as Clifford's replacement. Hardaway currently is head coach of the Memphis Tigers, who are regular participants in college basketball's NCAA Tournament.

The new coach will become the team's sixth since the start of the 2012-13 season, following Jacque Vaughn, interim coach James Borrego, Scott Skiles, Frank Vogel and Clifford.

The Portland opening also provides a possible opportunity for Clifford, who directed the Magic to a 21-51 record this season, after playoff appearances in his first two seasons and after the trades in March of starters Evan Fournier, Aaron Gordon and All-Star Nikola Vucevic.

Twitter users immediately erupted to the Magic's announcement, expressing frustration about the team's seemingly perpetual state of rebuilding. Twitter commenters longed for the days of star players such as Hardaway, Shaquille O'Neal and Dwight Howard and a return to the top of the NBA standings.

Clifford, the Magic’s 14th head coach since the franchise opened play in the 1989-90 season, compiled a record of 96-131 in his three seasons with the team.

Yet the coach reaped plenty of support, with many fans expressing disappointment with his departure. Others merely saluted him for what he did with the players he had.

In the news release, Clifford said, "I would like to thank the DeVos family (ownership), Magic leadership and the entire staff, and certainly wish everyone well.”

“It’s been an honor and privilege to coach this team in this community,” he said.

Following their trade of Howard in 2012, the Magic embarked on a youth-oriented rebuild and missed the playoffs for six consecutive seasons before they hired Clifford in 2018. Team leadership touted Clifford, who previously coached the Charlotte Hornets, as a coach who could teach young players and hold them accountable while also helping the team return to the NBA playoffs. Clifford succeeded at that, as the Magic reached the playoffs in his first two seasons.

Yet one injury after another, including ones that kept starting point guard Markelle Fultz and starting power forward Jonathan Isaac out for most of the season, derailed this year's team. When it became clear by the NBA trade deadline that Orlando would not reach the playoffs this season, Weltman pulled the trigger on major trades, further depleting the talent needed to compete for the postseason. Most notable was the decision to send Vucevic, a two-time all-star center, to the Chicago Bulls for center Wendell Carter Jr. and two first-round draft picks.

They also traded Gordon, a starting forward, to the Denver Nuggets for guards Gary Harris and R.J. Hampton and a 2025 draft pick, and they sent Fournier, a swingman, to the Boston Celtics for two future second-round draft picks.

The Magic finished the season with the league's third-worst record and is among three teams with the best odds of receiving the top pick in the draft when the winner of the draft lottery is announced. Orlando can drop to no later than the seventh pick with its own selection.