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"Gilmore Girls" creator exits in contract discord

LOS ANGELES (Hollywood Reporter) - The creator of "Gilmore Girls" will leave the WB comedy-drama at the end of the season after failing to agree on terms for a renewal of her contract.

Amy Sherman-Palladino's exit comes at a crucial time for the acclaimed show, which is set to make the transition to the new CW network for a seventh -- and likely final -- season in the fall. Her husband and fellow executive producer, Daniel Palladino, will also depart.

Sources indicated that producer Warner Bros. Television offered the pair a total of almost $5 million for their services on the show next season and a production deal. It is understood that they insisted on a two-year pact, while Warner Bros. would not commit beyond the upcoming 2006-07 season since it doesn't have deals with the CW or the cast for an eighth season.

In addition to setting the tone for the mother-daughter series starring Lauren Graham and Alexis Bledel, the Palladinos were the main writing force on the show. Between the two of them, they penned about 90 of the show's 132 episodes.

"Despite our best efforts to return and ensure the future of 'Gilmore Girls' for years to come, we were unable to reach an agreement with the studio and are therefore leaving when our contracts expire at the end of this season," they said Thursday.

"Our heartfelt thanks go out to our amazing cast, hardworking crew and loyal fans. We know that the story lines from this season will continue into the next and that the integrity of the show will remain long after we leave Stars Hollow."

"Gilmore" executive producer David S. Rosenthal has been hired to run the series next year. He joined "Gilmore" at the beginning of this season after working on such shows as "Ellen," which he co-created, and "Spin City."

"While we are disappointed that Amy Sherman-Palladino and Dan Palladino have decided not to stay with the show next season, we are very confident that Dave Rosenthal, an experienced writer/producer with the show, will make the transition seamless moving into the seventh year of 'Gilmore Girls,"' Warner Bros. and CW said in a joint statement. "We want to thank Amy for creating and nurturing this wonderful series for the past six years and giving us one of the most memorable mother/daughter relationships in television history."