Magic Johnson sensationally quit his role as Los Angeles Lakers head of basketball operations during the defeat to Portland Trail Blazers.
The five-time NBA champion was given permission to sack Walton after the regular season drew to a close.
But he instead opted to step down from his own position as he felt Lakers owner Jeanie Buss wanted the head coach to remain in charge.
Walton spoke about star man James in his post-Trail Blazers press conference.
However, the 39-year-old was speaking in past tense to hint he may not have long left in charge of the Lakers.
“It was great. The only thing that was hard was he got hurt,” Walton said, referencing James’ two-month lay-off with a groin injury.
“It takes time to build a relationship with somebody, but as our relationship grew and I got to see what it was like coaching him, he was great.
“I believe if we could have stayed healthy, we would have had a very successful season.
“He’s an incredible player. He’s an incredible superstar in how unselfish he is.
“It still blows me away, the talent that he is, to constantly be looking to make the right pass and the extra pass.”
James signed for the Lakers last summer after leaving Cleveland Cavaliers.
But he was not able to make the necessary impact in his debut campaign.
The three-time NBA champion was only able to guide his team to 10th in the Western Conference.
He has another three years left on his deal, and with reinforcements and a potential new coach for next term, there is still plenty of time for improvements.