Nick Nurse is out with the Raptors, four years after the coach led the franchise to their first NBA championship.
ESPN.com was first to report the news and added that Ime Udoka would be a top candidate to replace Nurse.
Nurse, 55, went 227-163 in his five seasons with Toronto.
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In his first season, a Kawhi Leonard-led Toronto team upset the Warriors in the NBA Finals.
However, the team has not been past the Eastern Conference semifinals since and missed the playoffs this season after blowing a huge lead to the Bulls in their play-in game.
TNT reported that Nurse would be a top target of the Rockets, who fired Stephen Silas after the season.
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Udoka, who is also a Rockets candidate, was suspended and then let go by the Celtics after reports of him having an affair with a team staffer emerged.