By a unanimous vote, the Scott County School Board terminated his contract as softball coach of the Lady Blue Devils.
School Superintendent Jim Scott said the board discussed Godsey's contract in closed session.
"This has nothing to do with his game record," Scott said.
Reached by telephone, Godsey said insubordination was cited as the cause for the decision.
"I'm just interested in doing what I think is best for the kids, and I really don't think that's what we did tonight," said Godsey, who also coaches girls basketball at Gate City. "I hope we can come up with a better solution."
Under Godsey's tenure as softball coach, the Lady Devils have won state championships in 2002 and 2005. On the basketball floor, Godsey's team won the 2005-06 Group A state title and advanced to the Final Four this season.
Godsey's status as Gate City's girls basketball coach has yet to be determined.
"Those recommendations won't be made until probably this spring, for next season," Godsey said. "And those have to come from the principals of the various schools."
Scott said Godsey still would receive his salary for this year's season.
No public reason was given for the board decision, and Scott did not wish to comment on the reasons for the move.
"We're still hoping something can be resolved at this point," Godsey said. "I feel like there's still a lot of things that haven't been brought out. I definitely disagree with the insubordination charge. But I cannot comment too much right now."
Godsey said he would "most definitely" like to stay as coach.
"We were hopeful that something could be worked out, other than what happened tonight."
To Godsey's knowledge, a replacement had not been named.
The Lady Devils are scheduled to open their softball season on Friday at Dobyns-Bennett.
Times-News staff writer Clifford Jeffery contributed to this report.