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MINNEAPOLIS (AP) — David Kahn is out as president of basketball operations for the Minnesota Timberwolves and Flip Saunders is coming in.

Three people with knowledge of the situation tell The Associated Press that team owner Glen Taylor has decided not to pick up the option for next season on Kahn's contract. Taylor is also putting the finishing touches on a deal to hire Saunders as Kahn's replacement. The people spoke on the condition of anonymity because an official announcement has not been made.

Kahn spent four seasons leading the Timberwolves. He helped bring point guard Ricky Rubio and coach Rick Adelman to Minnesota, but his teams went 89-223 and missed the playoffs in all four of his seasons.

Saunders, who coached the Wolves from 1995-2005, could have his deal finished as soon as Friday. He led the team to eight playoff appearances as a coach and the Western Conference finals in 2004-05.

Taylor's decision brings an end to a polarizing reign for Kahn. After serving as an executive with the Indiana Pacers, Kahn was a surprise hire in 2009 to replace longtime Timberwolves executive Kevin McHale. Kahn eventually decided not to bring McHale back as head coach, then went about a massive rebuild of a team that was still trying to move on after trading franchise player Kevin Garnett to Boston in 2007.

Kahn tabbed Kurt Rambis to usher in a new identity and style of play, but he lasted just two seasons on the job. With cleaning up the team's salary cap situation a priority in the first season, the Wolves won just 15 games with a collection of retreads and journeymen surrounding Al Jefferson, who was in his first season back from a torn ACL, and Kevin Love, who was in his second season in the league.

Kahn and Rambis clashed repeatedly on the direction of the team and the philosophy on the court. Rambis was fired with a record of 32-132 and Kahn was able to lure Adelman in 2011 to take over a roster that was just starting to take shape. With Rubio emerging as a young dynamo in his rookie season and Love asserting himself as perhaps the best power forward in the game, the Timberwolves were on track to end a long playoff drought until Rubio went down with a torn ACL in March.

Perhaps more damaging, Kahn drew Love's wrath by refusing to give him a maximum five-year extension in January. Love instead signed a four-year deal with an opt-out after three seasons and didn't hide his disappointment. He seethed behind the scenes and publicly about the perceived slight, a grudge that would carry over into this season.

The team tumbled out of the playoff picture, but hopes were high at the start of this season when Kahn added Andrei Kirilenko, Chase Budinger, Alexey Shved and Dante Cunningham to the mix. Then Love broke his hand just before the regular season started and broke it again in January, limiting the Olympian to 18 games for the year. Rubio returned from his knee injury in mid-December but didn't regain his old form until February, Budinger missed more than three months with a knee injury and Kahn's gamble on Brandon Roy proved to be ill-fated. Kirilenko, Nikola Pekovic and JJ Barea also missed stretches because of injuries and the Wolves finished 31-51.

Most of Kahn's biggest missteps came in the draft. He chose Jonny Flynn over Stephen Curry in 2009 with the sixth overall pick, traded a pick that Denver used to take Ty Lawson and chose swingman Wes Johnson fourth overall in 2010. Only two of the 10 draft picks the Timberwolves made in his four years — Rubio and 2011 No. 2 overall pick Derrick Williams — are currently on the roster.

Perhaps as damaging to Kahn as his draft performance was his inability to connect with those who worked with and for him. Some coaches, players and other team employees were turned off by Kahn's aloof disposition, an approach that inspired little support for him in the organization.

Going back to Saunders marks a return to the only truly competitive seasons the Timberwolves have had since coming into the NBA. He is the only coach to lead the team to the playoffs, but was fired the season after leading the Wolves to the Western Conference finals. That's the last time the Wolves have been to the postseason, the longest active drought in the NBA.

Saunders also coached in Detroit in Washington and still lives in Minnesota and remained close with Taylor even after a difficult split with the organization.

Saunders' first order of business will be pinning down Adelman's future. Adelman is currently mulling returning or retiring to spend more time with his wife, who suffered from seizures this season.

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