Harrower and the board are at loggerheads about his role.

Bendigo Spirit chairman Greg Bickley issued a media release this afternoon stating Harrower had rejected a new coaching deal leaving the club with no option but to look elsewhere.

Harrower only learned of the announcement through the Bendigo Advertiser and declared he had offered to coach for a "significantly lower fee" until the club was in stronger financial position.

.Harrower said his current contract included an option for a third year.

"I want to coach next year. I am looking forward to staying on," said the dual championship-winning coach.

"I have sought legal advice. I have tried to negotiate with the club."

A key instigator in the club's formation, Harrower has coached all eight seasons.

Spirit has reached the play-offs six times and was runner-up last season.

Mr Bickley said the club had no alternative but to look elsewhere for a coach for next season.

“Bernie provided the Spirit with a counter offer we simply can’t afford,” Mr Bickley said.

“We have been saying for a long time the club is in financial difficulty, and we have to make a lot of changes.

"This is not the result of just last years’ operation, this is the club now drawing a line in the sand after many years, to save its future.

“However, our coaching decision is not based around salary alone.

"There are also a number of long-term sustainability issues around player management that need to start to be addressed immediately.

"These go to the core of the club’s survival, and we need to start acting on them now.”

Mr Bickley said this week’s Australian Sports Commission Report into the WNBL backed up the Spirit board’s focus.

“It highlights the financial vulnerability of the league and the individual clubs, and calls for substantial administrative changes,” he said.

“Most notably, one of the recommendations is that clubs need to put more focus on professionalism.

"We have been saying that for a while now and the coaching situation has certainly sharpened that focus.

“We need to concentrate on the strength of the club as a whole, and that is why hard decisions need to be made. Our message has been consistent.

“The report also highlighted the significant stress player payments had placed on the club, and that has certainly been an issue for us in the past.

"When we talk about changing things, this is part of what we are talking about,” he said.

“For the club to survive we have to change and we have to be more professional, from a business perspective.”

Mr Bickley said he had spoken to Basketball Australia chief executive officer Anthony Moore and he supported the club’s plans.

“This is not about personalities or a political disagreement between parties, there is much more at stake,” he said.