Indianapolis, IN (My Sportsbook) - The Indiana Pacers have announced that Isiah Thomas will not return as head coach for the 2003-04 season.

"We have decided to go in a different direction," said Pacers President and CEO Donnie Walsh. "When I hired Isiah, I thought he was the right man for the job at the time and he was. But as our team has evolved, the decision was made that it's time to go in a different direction. We appreciate what Isiah has done in his three seasons here."

Thomas became the head coach of the Pacers in July 2000 and guided the club to a record of 131-115. Indiana reached the playoffs in each of Thomas' three seasons, but failed to advance past the first round.

The Pacers finished 48-34 last season and earned the third seed in the Eastern Conference playoffs, but were eliminated in six games by Boston.

The final year of Thomas' contract will be honored.

Thomas took over as head coach after Larry Bird's successful three-year stint on the bench.

Bird led the Pacers to a pair of Eastern Conference finals appearances in his first two seasons, then guided the club to the NBA Finals in the spring of 2000, where Indiana lost to the Los Angeles Lakers in six games.

Thomas' job security became an issue in July when Bird returned to the Pacers as the club's president of basketball operations.

"When I was hired, I told Donnie I wanted to take my time this summer to see how things were with the team going into this season and the future," said Bird. "After looking at film, seeing how things were and evaluating the basketball operations, I detected the team's chemistry wasn't what it should be.

"Donnie and I decided that a change was necessary and a fresh start was important. It's not a reflection on Isiah's job here, but more of an indication of where we want to go in the future."

The future could include former Detroit Pistons head coach Rick Carlisle, who was an assistant under Bird for three years in Indiana. Carlisle was fired by Detroit earlier this off-season after leading the club to consecutive 50-win seasons in his first two years as a head coach.

The Pistons reached the Eastern Conference finals this past season, falling to the New Jersey Nets.