Athletic director Eric Hyman announced the decision in a statement and coach Steve Spurrier would not go into any details after practice later Wednesday.
Saunders, suspended since Aug. 23, had been at the center of the Gamecocks' NCAA problems this summer. He was questioned by the governing body about potential agent contact regarding a party in South Beach this spring. He was also among several Gamecocks asked by Spurrier to leave a local hotel where they had been staying.
Saunders was suspended by Spurrier for violations the coach said were not connected to the NCAA probe. Saunders has not been with the team since, missing both South Carolina victories over Southern Miss and Georgia.
Spurrier wished Saunders the best. Saunders would remain on scholarship through the academic year and "hopefully, he'll stay and graduate," Spurrier said.
The 6-foot-6, 270-pound Saunders was South Carolina's third-leading receiver last fall with 32 catches for 353 yards and three touchdowns. He had started 13 games over the previous two seasons and leaves the Gamecocks with 60 career catches for 718 yards and six touchdowns.
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