Dick Bestwick, fired Nov. 30 as the University of Virginia's football coach, has refused an opportunity to remain as associate athletic director and has accepted a settlement on the remaining three years of the five-year coaching contract he signed after the 1979 season, the Richmond Times-Dispatch has reported.

Terms of the settlement were not disclosed and Bestwick said provisions of the final agreement between him and the university specify that neither party may discuss the settlement.

In all its particulars, Bestwick's contract provided him approximately $70,000 per year in salary and benefits, and a knowledgeable source at the university said the settlement figure is "somewhere close to $125,000."

Negotiations on the settlement were conducted by Ray Hunt, vice president for business and finance of the university. Bestwick was represented by Dick Fogg, a Richmond accountant.

Bestwick said he was unsure of his future plans. "I've always liked painting houses," he said. "I'd like to have the opportunity I had two years ago shortly after I signed the contract with Virginia."

Bestwick said that in January 1980 Forrest Gregg, then the new coach of the Cincinnati Bengals, offered him a position as an assistant coach. "And if I'd taken it," said Bestwick, "right now I'd be in the Super Bowl."

Meanwhile, the Texas A&M board of regents, rebuffed by Michigan's Bo Schembechler, resumed their search for an athletic director while Coach Tom Wilson refused to resign and continued his search for football recruits.

H.R. (Bum) Bright of Dallas, chairman of the board, said Schembechler had turned down the shcool's offer of a 10-year, $2 million contract, but that negotiations would continue with other candidates.

Sources at A&M said Florida State Athletic Director Hootie Ingram was being considered for the athletic director's job and that John Mackovic, Dallas Cowboy assistant coach, was a candidate to become head coach. Mackovic also is a candidate for the vacant head coaching job at Southern Methodist.