Marc Stein of ESPN reports that Nelson's assistant would take over coaching duties for the franchise.
Sources with knowledge of the Warriors' thinking told ESPN.com that the club's new owners, Joe Lacob and Peter Guber, have decided to part company with Don Nelson -- who late last season became the winningest coach in league history -- and replace him with assistant Keith Smart.
The move is scheduled to be finalized by the end of the week, sources said, with Smart taking charge of the team in time for media day Monday and the team's first practice of the season Tuesday.
Nelson had one year remaining on his contract at $6 million. Sources said Nelson, as per the terms of his contract, will receive his full salary.
Adrian Wojnarowski of Yahoo Sports reports that the split between management and coach was amiable, and that Smart's status beyond this season remains uncertain.
New Warriors owner Joe Lacob was determined to replace Nelson as coach, and Nelson, sources said, was glad to take his money and return to retirement in Hawaii.
Smart is working on a contract with the Warriors, and it’s still being negotiated whether he’ll be given a deal guaranteed beyond the 2010-11 season, a source said.