Orlando close on Donovan, Van Gundy

The Orlando Magic is close to resolving its coaching fiasco by agreeing to a deal to dismiss Billy Donovan and hire Stan Van Gundy, according to reports Tuesday.

ESPN.com reported Donovan and the team were finalizing an agreement for his departure. Terms would prevent Donovan from coaching in the NBA for five years, sources told the outlet.

The Orlando Sentinel reported that the Magic offered a contract to Van Gundy, a former Heat coach and current advisor to Pat Riley in Miami.

The Magic might have to compensate the Heat with money or a draft pick because Van Gundy is under contract through June 30, 2008.

Miami only has a first-round pick, No. 20 overall, in this year’s draft, while Orlando has no first-rounder but has three second-round selections.

Reached at his home Tuesday night, Van Gundy declined to comment when asked if either the Magic or Sacramento Kings -- with whom he has interviewed twice, including last Saturday -- had made him any contract offers.

Riley was traveling and unavailable for comment, according to a Heat official.

Orlando and Donovan are laboring to finalize their futures fast -- Donovan to save his consensus No. 1 recruiting class at Florida, the Magic to save face.

Donovan agreed to a five-year, $27.5-million deal Thursday with the Magic. He met the media Friday, and a day later told the club he wanted out of the contract.