The Memphis Grizzlies have decided to part ways with head coach Lionel Hollins. Hollins told the Associated Press Monday that the team will not offer him a new contract for the upcoming season.

The story was first reported by the Memphis Commercial Appeal on Monday before the coach confirmed the news to the AP.

Dave Joerger, the Grizzlies' current assistant coach, is believed to be the top choice to replace Hollins, sources told ESPN.com. Hollins led the Grizzlies to their most successful season in franchise history with a Western Conference finals appearance and 56 wins during the regular season.

However, Memphis decided to part ways with Hollins based on what is believed to be "philosophical differences" between the coach and new ownership, according to ESPN.

Sources have told ESPN that Memphis is also interested in former Denver Nuggets coach George Karl, who was unceremoniously terminated after being named the NBA coach of the year. Former Phoenix Suns coach Alvin Gentry is also being considered, however, the team is believed to be leaning toward Joerger, who's defensive scheme helped Memphis capture the No.1 ranking in team defense last season.

Following the team's sweep in the Western Conference Finals, the Grizzlies granted Hollins permission to talk with potential suitors looking for the coach's services.

Sources have confirmed that despite the success both sides have had since Hollins' hiring, the team is not ready to risk offering the coach a long-term deal and more power. The new management team - including owner Robert Pera and CEO Jason Levien - are interested in hiring their own coach in which they were responsible for the hiring of.