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Orlando, Fla. – 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 adviser to Pat Riley in Miami.

The Magic might have to compensate the Heat with money or a draft pick because Van Gundy is still under contract through June 30, 2008. Miami has a first-round pick, No. 20 overall, in this year’s draft, while Orlando currently has a first-rounder and three second-round selections.

Reached at his home Tuesday night by The Associated Press, Van Gundy declined comment when asked if either the Magic or Sacramento Kings – with whom he has interviewed twice – had made him any contract offers.

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.

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