"The university deserves a full time assistant coach and I am not able to provide that to the basketball team while the false allegations against me are being investigated," McGee wrote in a letter to UMKC athletic director Carla Wilson.
Louisville has come under fire after an escort alleged that McGee paid for prostitutes to strip and have sex with recruits and players at an on-campus dormitory. The NCAA, University of Louisville police and the school are all investigating the allegations made in the book "Breaking Cardinal Rules" by Katina Powell.
Powell, who appeared on ABC's "The View" on Friday with her daughters, wrote in the book that McGee paid her $10,000 for 22 shows from 2010 to 2014, with many taking place at the players' Billy Minardi Hall dormitory. Powell and daughters Shay, Lindsey and Rod Ni -- all of whom Powell writes performed shows with her -- appeared on the show with attorney Larry Wilder.
McGee had been on paid leave from UMKC since Oct. 2, the day the book outlining the allegations was announced. UMKC is also investigating the claims.
Earlier this week, five players confirmed to Outside the Lines that the women did come to strip and that some had sex with the players and recruits, all paid for by McGee.
Wilder said the crime of selling sex for money in Kentucky is a Class A misdemeanor with a one-year statute of limitations for prosecution. There is no such limitation for the promotion of prostitution, which Powell said is a Class D felony.
The attorney added said that if Powell is prosecuted, "then they need to prosecute McGee as well because Mr. McGee participated by contacting Miss Powell, paying for the parties and paying for the provision of sex."
Powell described her involvement as "fun" and shrugged off criticism of including her daughters in the shows.
"Going to the dorm and being around the basketball players. ... was fun," Rod Ni Powell added.
Jeff Cooke, spokesman for the Jefferson County Commonwealth's Attorney, said Friday that investigations by prosecutors and police are ongoing and that there was "nothing to report at this time."
Coach Rick Pitino has denied any knowledge of such parties. He told ESPN.com and Yahoo! Sports that McGee is the only person who knows the truth and that "he needs to come out and tell the truth to his teammates, to the University of Louisville, to his fans and to his coaches."
In a blog post Thursday, the Hall of Fame coach wrote that he would not resign.
McGee played at Louisville before becoming a graduate assistant coach and director of men's basketball operations. He left the university last year to become an assistant at UMKC.
Information from ESPN senior writer Dana O'Neil and The Associated Press contributed to this report.