The Rockets went 52-30 this season but lost to Utah in seven games, raising the possibility Van Gundy was going to resign or be dismissed. This was the Rockets' third first-round loss in four seasons under Van Gundy.

Van Gundy had one nonguaranteed year left on his contract, meaning the team held the option to retain him. The team reportedly has contacted Rick Adelman, the former coach of Portland, Golden State and Sacramento.

The firing comes days after 35-year-old general manager Daryl Morey took over for the retiring Carroll Dawson following the Rockets' playoff elimination.

"I was hopeful all the way up to last night they would change their mind," Van Gundy told Houston television station KRIV.

Morey said Van Gundy was given time to "evaluate his situation" with the understanding that the Rockets would begin looking for coaching candidates. By the time Van Gundy decided he wanted to be the coach and not a consultant, "we had already become positive about one alternative candidate," Morey said at a news conference. He wouldn't name the candidate.

"We have a very short list," said Morey, who wouldn't specify why Van Gundy was fired. "The details of who we're interviewing, we'll leave that to the resolution."

Van Gundy led the Rockets to a 182-146 record in four seasons. But Houston went 7-12 in three postseason appearances and more was expected from teams anchored by All-Stars Tracy McGrady and Yao Ming.

The Rockets lost Game 7 at home to Utah. The Jazz then took advantage of Golden State's first-round upset of Dallas and advanced to the Western Conference finals by beating the Warriors in five games.

"You have to win that seventh game at home, certainly," Van Gundy told the Houston Chronicle. "If you win, you have a chance to continue on."

McGrady dropped to 0-6 in playoff series with the loss to the Jazz.