The Cavaliers had closely examined the college ranks for a head coach, and are now looking at the landscape of NBA assistant coaches and former head coaches.
Cleveland's opening has grown more appealing with the franchise winning the draft lottery for third time in four years. The Cavaliers have a chance to draft a potential franchise cornerstone with the No. 1 overall pick to go with All-Star point guard Kyrie Irving.
In five years as an assistant under coach Doc Rivers with the Boston Celtics and Los Angeles Clippers, Lue has developed into one of the NBA's most well-regarded young head-coaching prospects.
Lue, 37, played 10 seasons in the NBA for eight teams, and won two championships with the Los Angeles Lakers in 2000 and '01.
Another member of the Clippers' coaching staff, Alvin Gentry, also will be a candidate for the Cavaliers job. Gentry has a strong relationship with general manager David Griffin extending back to their days together with the Phoenix Suns.