Sonics coach Nate McMillan is likely going to stay put in Seattle.
The two sides are said to be close to an agreement on a new multi-year deal.
"The terms of a deal are not yet known, but a source indicated that negotiations that began less than a week ago have gone well enough that McMillan could come to terms by Sunday night."
In other Sonics news, the team is also working on a new contract for GM Rick Sund.
The Sonics have made an offer but talks have been placed on hold while a deal is worked out with McMillan.
Both McMillan and Sund's contracts expire on June 30.