Memphis owner Michael Heisley has initiated negotiations toward a contract extension for head coach Lionel Hollins.

Hollins is currently working under the 17-month deal he signed on Jan. 25, 2009.

Heisley instructed general manager Chris Wallace to contact Hollins' representative last week.

"I made up my mind that I would start negotiating after the start of the year," Heisley said. "I told Chris that back in September. I'm not going to discuss contract negotiations in the paper. But I'm not interested in making any changes. We're going to work on an extension for Lionel. He's earned it."

The Grizzlies began the season 1-8 but now own a .500 record (18-18) for the first time since 2005-06 when Hollins was an assistant under Mike Fratello.