That’s according to Lakers insider Brad Turner, of the LA Times.
After a disappointing season saw the organisation miss out on the playoffs for a sixth straight season despite the addition of LeBron James in the summer, Walton paid the price.
Having been fourth in the Western Conference as of Christmas Day, injury to LeBron and subsequent off-court problems saw the Lakers end the year in 10th with a 37-45 record.
That marked an improvement of just two wins on the previous season despite four-time MVP LeBron.
And Los Angeles finally parted way with ex-forward Walton after three seasons, with general manager Rob Pelinka thanking the 38-year-old for his “dedicated service” during his tenure as head coach.
Given Walton’s future has been precarious for some months, with Lakers owner Jeanie Buss’ confidence in the head coach having waned of late, the 16-time NBA champions have been linked with a host of names.
And according to Turner, out-of-work coach Lue – who worked with LeBron at the Cleveland Cavaliers – is a prime candidate.
Lue took over at the Cavs having initially been working under head coach David Blatt and led Cleveland to their first ever championship in 2016.
He was in charge as LeBron and the Cavs took two more trips to the NBA Finals, though they were beaten by the Golden State Warriors both times.
Lue was then sacked by Cleveland in October last year after starting the year 0-6, with his overall record reading 128-83.
Per Turner, Philadelphia 76ers assistant coach Williams is another man the Lakers are keen on.
The 47-year-old was previously the head coach of the New Orleans Pelicans between 2010 and 2015, while he also acted as the assistant to Mike Kryzyzewski for the United States national basketball team as they won golf in Rio three years ago.
In New Orleans, Willims was 173-221 though failed to take the Pelicans past the first round of the playoffs in either of the two seasons they qualified under him, losing to the Lakers in 2011 and Golden State in 2015.
He has worked with the Sixers under Brett Brown since June of last year, with Philadelphia entering this season’s playoffs as the No 3 seed in the East.
Williams has also been linked with the vacant position at the Sacramento Kings, who have opened talks with Walton regarding a meeting to potentially make him their new head coach.
Turner also added that Jason Kidd – previously the coach of the Brooklyn Nets and Milwaukee Bucks – is not expected to be on the Lakers’ shortlist of options.
Fellow LA Times reporter Tania Ganguli reported that Pelinka is the man leading the search for the Lakers’ next coach, with Magic Johnson recently having stepped down as president of basketball operations at Staples Center.