Mahendra Singh Dhoni has been sacked as the captain of the Rising Pune Supergiants for the upcoming season of the Indian Premier League. The franchise has appointed Australia's Steve Smith as the new skipper. (Latest Cricket stories)

"I have the highest regard for MS Dhoni as a leader and a person. Dhoni will continue to be an important part of our team. He is supportive of the decision keeping the franchisee's best interests in mind," RPS owner Sanjeev Goenka said in a statement.

Dhoni has extended his full co-operation and is ready to help Smith in decision-making on the field. While Dhoni is expected to keep his place in the side, the wicketkeeper-batsman is likely to be promoted up the order.

"We have opted for Steve Smith as captain of RPS for the forthcoming IPL season," Sanjeev Goenka told India Today.

"Despite having a good side the team did not get expected results last year. Last year we failed. We could have done much better," he added.

Dhoni has also been communicated about the decision by the franchise.

"Mahi was cooperation personified when we conveyed the decision to him," he said.

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Pune, one the two franchises to replace the suspended Chennai Super Kings and Rajasthan Royals, finished seventh in their debut season last year.

Under Dhoni, the team managed to win only five of their 14 matches in the IPL 9.

Dhoni's form was also a cause of concern for the side. He managed to score only 284 runs from 12 innings with only one fifty to his credit.

The 35-year-old is one of the three captains to have won the cash-rich T20 league twice. He led Chennai Super Kings for nine editions starting from the league's inaugural season in 2008.

Under him, CSK won the IPL in 2010 and 2011 while the Champions League in 2010 and 2014.

Dhoni recently stepped down as India's limited-overs captain, handing over the mantle to Virat Kohli in all three formats.