The experienced expert was doomed by failure in the ABA League and a 2:0 series defeat to Partizan in the playoff semifinals.
Obradović won the Serbian Cup with the "red and whites", but after that the team's form fell. They lost to Barcelona in the play-offs.
"KK Crvena Zvezda informs the public that Saša Obradović is no longer the first coach of the senior team. The club would like to thank the former coach for his engagement and dedicated work during his time at our club," the Red Star statement said.
Milan Tomić will lead the team in the KLS finals, at F4 in Niš.
"The team will be led in the coming period by our former coach Milan Tomić, to whom the club thanks him for accepting to take over the team at this moment and leading the team in the finals of the domestic championship," the statement reads.
Tomić won the ABA and Serbian championship titles with Red Star when he worked as a coach, and last summer he returned to Mali Kalemegdan as the club's first operator in charge of sports issues.