NBA coach of the year in 2020, Nurse spent 10 seasons with the Raptors (including five as an assistant) and had the best winning percentage in team history 227-163 (.582) and took the team to three playoff appearances.
But the team disappointed this season when they failed to qualify for the post-season, crashing out to the Chicago Bulls in the play-in game.
"The decision to make a change like this is never arrived at easily or taken lightly, especially when it comes to a person who has been an integral part of this franchise's most historic accomplishments, and who has been a steady leader through some of our team's most challenging times," said Raptors president Masai Ujiri, in a statement.
"This is an opportunity for us to reset, to refocus, to put into place the personnel and the players who will help us reach our goal of winning our next championship."
While Nurse is leaving the team he will not be leaving Canada where he remains head coach of the national men's basketball team which is preparing for the World Cup and qualifying for the 2024 Paris Olympics.
