The news came out just minutes ago ... with WVU announcing the coaching legend will NOT lose his job over the comments, but will spend a bit of time away from the team.

The punishment also includes sensitivity training ... which will now be a requirement for all current and future coaches at the university, according to the release. On top of that, Huggins' contract has been reconstructed to a year-by-year agreement ... and he's being kept on a short leash.

"We have made it explicitly clear to Coach Huggins that any incidents of similar derogatory and offensive language will result in immediate termination," WVU prez Gordon Gee and athletic director Wren Baker said in a statement.

The $1 million that has been pulled from Huggins' checks will now be used to support the university's LGBTQ+ Center and other organizations that help marginalized communities.

Huggins will also make a donation to Xavier's Center for Faith and Justice ... as well as the Center for Diversity and Inclusion.

Of course, Huggins faced a ton of backlash after referring to Xavier fans as "Catholic f**s" while speaking to Bill Cunningham on 700 WLW in Cincinnati.

Huggins apologized for his comments ... saying there is no excuse for what he said, and he would accept any punishment handed his way.

"I am ashamed and embarrassed and heartbroken for those I have hurt," Huggins said Monday. "I must do better, and I will."

FYI -- Huggins was making $4,150,000 a year before the punishment ... and his contract had options that ran through the 2027 season.

"We will never truly know the damage that has been done by the words said in those 90 seconds," Gee and Baker said in the joint statement. "Words matter and they can leave scars that can never be seen. But words can also heal."