From Marc J. Spears / Boston Globe:

An NBA source said former Celtics star Kevin McHale turned down a three-year offer to coach the Timberwolves after he was moved from his general manager position to coach Dec. 8. While McHale has been noncommittal about whether he’d like to return next season, the three-year offer is off the table now, since owner Glen Taylor is expected to hire a new GM, likely from outside, who will make the coaching hire. By removing himself from the coaching decision, Taylor would make it easier to deal with the situation if the new GM doesn’t bring his friend McHale back.