According to Woj, former Lakers point guard and ex-Cavs head coach Tyronn Lye is viewed as a "strong frontunner" to take over the position.
Only days after the departure of Magic Johnson, the Lakers will be without a head coach as well.
Adrian Wojnarowski reported this week that Walton expected to be fired immediately after the season - but the Lakers were blindsided by Johnson's decision to quit.
Walton finishes his tenure with a 98-148 record.
"I want to thank Jeanie Buss and the Buss family for giving me the opportunity to coach the Lakers", Walton said in a statement issued by the Lakers. Walton is the first choice of general manager Vlade Divac.
New human species found in Philippines
They've named the new species Homo luzonensis , after the island of Luzon in the Philippines where it was found. We've learned from looking at their curved toe and finger bones that they likely had to do a lot of climbing.
The Lakers finished this season 37-45 and have failed the reach the playoffs over the last six seasons.
The Lakers had cursory discussions with Walton's representatives on Wednesday in which they discussed whether there was a way forward, multiple sources told ESPN's Ramona Shelburne.
Johnson still had problems with Walton's coaching style, his rotations and his reluctance to add additional assistants to his bench.
Steve Kerr on the Lakers firing Luke Walton: "They're losing one of the best human beings in the league".
"Want to thank Luke and the rest of the coaching staff for allowing me to be me from day 1", forward Kyle Kuzma tweeted.