The Schrödinger equation with the modified Pöschl‐Teller (MPT) potential is studied by working in a complete square integrable basis that supports a tridiagonal matrix representation of the wave operator. The resulting three‐term recursion relation for the expansion coefficients of the wavefunction is presented, and the wavefunctions are expressed in terms of the Jocobi polynomial. The discrete spectrum of the bound states is obtained by diagonalization of the recursion relation. © 2011 Wiley Periodicals, Inc. Int J Quantum Chem, 2011