LEXINGTON, Ky. — Former men’s basketball coach Billy Gillispie and the University of Kentucky have settled their cases over his firing for nearly $3 million, the school said Tuesday.

Gillispie was dismissed earlier this year and sued for breach of contract and fraud in May, seeking at least $6 million. The university countersued.

He had not signed a contract during his two years coaching the Wildcats to a 40-27 record but was working under a memorandum of understanding. He charged that he should have been paid $1.5 million per year for four of the five years left on the deal.

In a statement, the university said the lawsuits were settled through mediation. The agreement, signed Tuesday, said Gillispie would receive a little more than $2.98 million. About $260,000 will be paid by the university for attorney’s fees, as well as about $5,600 in mediation fees.

Gillispie’s attorney Demetrios Anaipakos of Houston, did not immediately return a telephone message or e-mail from The Associated Press seeking comment. He told KRIV-TV in Houston that Gillispie was glad to have the case behind him.

‘‘Although the decision to sue was a difficult one for him, the fact a settlement was reached at a much higher dollar amount than Coach Gillispie was ever offered by the school vindicates his decision,’’ Anaipakos said.