Updated

California reached a settlement with former football coach Jeff Tedford on Monday that will pay him up to $5.55 million for the final three seasons of his contract.

Under terms of his contract, Tedford had been guaranteed $2.3 million a year for the final three seasons of his contract.

With the settlement announced by the school on Monday, Tedford will get $1.8 million in 2013, $1.8 million in 2014 and $1.95 million in 2015, saving Cal at least $1.35 million over the three years.

The deal allows Tedford to keep a larger share of any salary he receives in the next three seasons as a college head coach or NFL head coach or assistant. The university and Tedford will split evenly any amount he earns in excess of $1.5 million in any year in those roles before Dec. 31, 2015.

"During his tenure at Cal, Jeff Tedford deeply cared for his student-athletes, their performance on the field and in the classroom, as well as their families, this department and the entire university," athletic director Sandy Barbour said in a statement. "We appreciate all that Jeff contributed to Cal's reputation for excellence during his 11 years at the university and wish him well in all his future endeavors."

Tedford is the winningest coach in Cal history with an 82-57 record. He was fired in November after going 3-9 last season.

Tedford also played a big role in Cal's $321 million renovation of Memorial Stadium and adjacent $150 million on-campus High Performance Center that gave the school the facilities to compete with the rest of the Pac-12.

"I am proud of all the accomplishments we achieved together at Cal, both on and off the field, and the manner in which we raised the program's national profile and expectations," he said in a statement. "I am honored to have played a role in the renovations to California Memorial Stadium, and in improving the facilities, with the goal of enhancing the experience for the entire Golden Bear community.

"I look forward to maintaining my strong personal bond with my former players and staff, while pursuing the next chapter in my professional career."