Former Cleveland Cavaliers coach Tyronn Lue and Philadelphia 76ers assistant coach Monty Williams are the central candidates in the Lakers' search to replace Walton, league sources told ESPN's Adrian Wojnarowski.
And Walton might not be out of work for very long. However, it has since been reported Walton was essentially fired and hoped to remain with the team.
Walton finished his third season as head coach of the Lakers with a disappointing 37-45 record following James' arrival, which brought high expectations for the team.
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"Our new coach, which I'm looking for, has to bring, first of all, that style we had past year - that's Kings style", Divac said.
Walton had the Lakers at 20-14 on Christmas night after a blowout win at Golden State, and they appeared to be on the verge of coming together.
Walton was sacked following a disastrous season for the Lakers.
James missed 27 games - a career-high - with a groin injury, point guard Lonzo Ball played in only 47 games because of ankle problems and wing Brandon Ingram was out for 30 games after being diagnosed with a deep venous thrombosis that required surgery.
The Lakers wished their former coach well when announcing his departure. A multitude of fans and analysts have pointed to a potential Luke Walton-Sacramento Kings pairing as "perfect", and when you look at Walton's strengths, it certainly seems that way. They're losing somebody who players believe in, players want to play for.