Walton is the first choice of general manager Vlade Divac.
Lue, who won two championships with the Lakers as a player, coached James to a championship with the Cavaliers in 2016.
Walton played in the National Basketball Association from 2003 to 2013, winning two National Basketball Association titles as a Lakers player. "We wish Luke and his family the best of luck moving forward".
Walton went 98-148 in his three years with the Lakers and said Los Angeles would always be "special" to him and his family in a statement following his release.
Luke Walton will be fine. Jeannie Buss and Rob Pelinka are going to make sure that the new coach runs the team how they want, which will likely be whatever LeBron James wants.
"I'm disappointed for Luke". Johnson attributed his decision in part to his desire and reluctance to fire Walton, who is close to Lakers owner Jeanie Buss.
He was hired by Sixers coach Brett Brown before this season. Ball then reportedly returned to Los Angeles via arrangements made by the team without having surgery. Johnson, though, said that his relationship with Walton was fine after the incident, which he considered overblown. Lue led the Cavs to three straight NBA Finals, and was at the helm during an improbable 3-1 series comeback and upset of the Golden State Warriors.
Lakers guard Rajon Rondo said just this week that Walton "did a hell of a job with what he had, the cards he was dealt". The former second overall pick suffered a season-ending ankle injury January 19 against the Houston Rockets and saw declines in several per game averages from his rookie year, including points, rebounds, and assists.