HOUSTON -- Rockets coach Jeff Van Gundy was fired Friday, less than two weeks after Houston made yet another first-round playoff exit.

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 general manager Daryl Morey took over for the retiring Carroll Dawson following the Rockets' playoff elimination.

The Rockets said in a statement they talked with Van Gundy during a "prolonged negotiating period," and he was offered a position with the team as a senior consultant.

"He asked for, and was granted, additional time to evaluate his situation with the agreement that we would begin looking into other candidates," Morey said. "During that process it became clear that Jeff did not want to continue in any capacity with the team other than as head coach."

"It's disappointing but they have every right to make changes as they see fit. And it's always hard being fired, but its part of the business," Van Gundy told KPRC Local 2. "I had four great years in Houston. I really, really enjoyed it. I enjoyed the players I got to coach and the coaches I got to coach with. They are great professionals. And I'm just really thankful for the opportunities I was given in Houston by (rockets owner) Les (Alexander) and (former rockets GM) Carroll Dawson. And I couldn't be more appreciative."

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.

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

Van Gundy now may be headed back to one of his old jobs. He was scheduled to work as a guest analyst for ESPN on Friday night's playoff game between Phoenix and San Antonio.

Van Gundy was working in television when the Rockets hired him before the 2003-04 season. Before that, Van Gundy coached the New York Knicks for seven seasons, leading them to the NBA finals in 1999.

He joined the Rockets as the 10th coach in franchise history in 2003. Van Gundy's career coaching record is 430-318, but only 44-44 in the postseason.

A possible replacement is Rick Adelman, who has coached the Portland Trailblazers, Golden State Warriors and Sacramento Kings. He met with Rockets management earlier this week.

"And Rick Adelman, if that's the way it ends up, is a terrific coach and an even better man than he is a coach, even. They are going to have great success there going forward," Van Gundy said.

For more about the move, be sure to check out Local 2 Sports Director Randy McIlvoy's blog, Randy's Rants.

Related Rockets Videos:

May 8: Rockets Have Final Team Meeting Of Season
May 8: Rockets Discuss Season, Future
May 6: Jazz End Rockets Season
May 4: Van Gundy Talks About Game 7
April 29: Van Gundy Looking For Answers
April 19: Van Gundy Talks Playoffs