Pagano reportedly was told of the decision Saturday and informed the team prior to taking on the Houston Texans on Sunday that Week 17 would be the "last rodeo together".
Pagano was retained in 2017 even after owner Jim Irsay and the Colts fired general manager Ryan Grigson and replaced him with Chris Ballard.
The Indianapolis Colts are expected to fire head coach Chuck Pagano, according to Adam Schefter of ESPN. Although his tenure in Denver did not end well, he has been one of the league's most successful offensive coordinators during two different stints with the Patriots.
The Chuck Pagano era is over in Indianapolis.
Pagano went 56-46, including the playoffs, as the Colts coach and led the team to three straight postseason appearances in his first three seasons.
With a 53-43 record in Indianapolis, Pagano was undone this season by the absence of star passer Andrew Luck and a remaining roster that struggled to compete in the AFC. They were without quarterback Andrew Luck for the entire 2017 season after he underwent surgery last January to fix a torn labrum that has bothered him since 2015.
Irsay, who has dabbled with splashy hires like Sean Payton or Jim Harbaugh in recent years, may be of the mindset that he needs a bigger name to help push this franchise back in the right direction (and help sell some tickets at a time when Luck's murky future clouds everything else in the franchise). After a trio of 11-5 seasons and two AFC South titles, the Colts had consecutive 8-8 seasons before the disappointing 2017 campaign. Chiefs offensive coordinator Matt Nagy and Seahawks offensive line coach Tom Cable have been reported to be possible replacements for Pagano.