The Sacramento Kings' new owners told general manager Geoff Petrie that his contract will not be renewed, USA Today reported.
The owners have already begun a search for his replacement, according to the report.
The NBA voted recently to keep the Kings in Sacramento, and earlier this month they were sold to a group led by software magnate Vivek Ranadive.
Petrie's contract expires at the end of June, and Ranadive told him last week that he would not be retained.
Kings head coach Keith Smart is not expected to be retained either, according to the report.
Petrie's tenure with the team began in 1994. The Kings finished this season 28-54 and have missed the playoffs for seven straight seasons.
USA Today reports that Ranadive is focusing on three people as possible replacements for Petrie: San Antonio Spurs president R.C. Buford, Golden State Warriors assistant general manager Travis Schlenk, and Memphis Grizzlies general manager Chris Wallace.
Former Indiana Pacers general manager David Morway could be among others under consideration.