"We would like to thank Luke for his dedicated service over the last three years," said Pelinka. "We wish Luke and his family the best of luck moving forward."
Former Cleveland Cavaliers bench boss Tyronn Lue and Philadelphia 76ers assistant coach Monty Williams are reportedly the main candidates to replace Walton, league sources told ESPN's Adrian Wojnarowski.
The 39-year-old Walton joined the Lakers in 2016 following three seasons as an assistant coach with the Golden State Warriors. Los Angeles went 98-148 during his three-year tenure, including a 37-45 record this past campaign.
While owner Jeanie Buss supported Walton, he didn't appear to be on great terms with the Lakers' front office. Walton reportedly hadn't spoken in weeks with now-former president of basketball operations Magic Johnson.
"I want to thank Jeanie Buss and the Buss family for giving me the opportunity to coach the Lakers," said Walton. "This franchise and the city will always be special to me and my family."
Sacramento Kings general manager Vlade Divac will reach out to Walton about the team's head coaching vacancy, a source told The Athletic's Sam Amick. The Kings fired Dave Joerger on Thursday and Walton is reportedly Divac's first choice for his replacement.
The Lakers drafted Walton 32nd overall in 2003. He spent nine seasons with the team and won back-to-back rings (2008-09 and 2009-10).