MORGANTOWN, W.Va. -- Bill Stewart is out as West Virginia's football coach.
A person close to the situation told the Charleston Daily Mail Friday Stewart and the university reached an agreement in the afternoon to sever their relationship. A formal announcement confirming Stewart's resignation is imminent.
Dana Holgorsen, hired in December to replace Stewart following the 2011 season, will likely be promoted to head coach immediately. He'd also be bumped to a prorated salary of $1.4 million, according to the conditions of the contract he signed Dec. 14. His salary will increase by $250,000 every year for the rest of his six-year contract.
The Daily Mail reported Monday WVU was looking at members of the football staff and program, as well as athletically affiliated organizations, to see who had fabricated stories about Holgorsen and attempted to compromise the coaching transition.
Stewart was said to be included in the inquiry, but not the sole target.
For the first time, WVU met with Stewart and his legal counsel to finalize a settlement plan Friday. Stewart was represented by Morgantown attorney Michael Benninger, of the law firm of Wilson, Frame, Benninger & Metheney.
Stewart had been represented in recent contract dealings by David Hendrickson, of the Charleston law office of Eckert, Seamans, Cherin & Mellott, but their association ended suddenly and for still unknown reasons.
Hendrickson, who earned his undergraduate and law degrees from WVU and is the chairman of the West Virginia Higher Education Policy Commission, did not return phone and email messages.
Stewart, who turns 59 Saturday, will receive a buyout from the university and one likely larger than what is defined by the modified employment agreement he signed Nov. 17 and had Hendrickson amend Dec. 7.
Stewart, a native of New Martinsville who played for WVU's freshman team in 1970 before transferring to Fairmont State, was 28-12 at WVU, including 2-2 in bowl games. He returned to WVU as an assistant coach in 2000 and worked one season under former Coach Don Nehlen and was retained the following season when Rich Rodriguez succeeded Nehlen.
When Rodriguez left WVU for Michigan in mid-December 2007, Stewart was installed as the interim head coach as the Mountaineers prepared for the Fiesta Bowl. Despite never interviewing for job, Stewart led ninth-ranked WVU past fourth-ranked Oklahoma, 48-28.
He was named head coach early the next morning.