Schwartz's departure was reported by ESPN.com’s Adam Caplan on Monday morning. According to the report, Schwartz and Ryan did speak but ultimately decided against working together because of "differing defensive philosophies."
Schwartz spent one season with the Bills after being fired as head coach of the Detroit Lions.
On Monday, Buffalo hired former New York Jets head coach Rex Ryan as its new coach, and Ryan is expected to bring his Jets defensive coordinator, Dennis Thurman, with him to the Bills.
"Jim's defenses are always tough and ranked near the top of the league standings," Ryan said. "I wanted to give Jim the opportunity to pursue other opportunities and so we have terminated his contract. He did a terrific job with the Bills defense this past year..."
Under Schwartz, the Bills ranked fourth this season in total defense. They forced 31 turnovers (third-best in the NFL), intercepted 19 passes and led the league with 53 sacks.
- Scooby Axson and Christopher Woody