8:22pm: Sources tell Jon Krawczynski of The Associated Press that Taylor has yet to decide who'll run the team's basketball operations next season. Saunders told KFXN-FM in Minneapolis that he has not yet been formally offered a job with the Wolves.
6:24pm: Kahn responded to the report in a text message to Jerry Zgoda of the Star Tribune, saying that he and Taylor have held conversations about the team's offseason plans, including free agency. Kahn's understanding is that he and Taylor will meet regarding his job status once coach Rick Adelman makes his decision about whether to return for next season.
10:19am: Flip Saunders is expected to return to the Timberwolves as the team's president of basketball operations, according to Steve Aschburner of NBA.com, who reports that the move could become official as soon as next week. Saunders would replace David Kahn as the team's head of basketball operations, with Kahn's 2013/14 option not being exercised, says Aschburner.
The move would come as a bit of a surprise, since last month a report suggested Kahn's option for '13/14 would be picked up by the Wolves. Rumors have been swirling for several weeks that Saunders was being considered for a front office role with the Wolves, but owner Glen Taylor indicated earlier in April that he and Saunders hadn't discussed that.
Saunders had been representing a group interested in buying the T-Wolves from Taylor, though there didn't appear to be any serious progress on that front. However, one source who spoke to Darren Wolfson of 1500 ESPN Twin Cities (Twitter link) speculates that if Saunders does replace Kahn, it could mean that Taylor is closer to selling the franchise, perhaps to the group Saunders represents.
If Kahn doesn't return to Minnesota for '13/14, it would be the end of an up-and-down tenure for the Wolves GM. Although he has added plenty of talent during the team's rebuild, he has also been panned for a handful of moves, including drafting Jonny Flynn and not signing Kevin Love to the five-year extension Love had been seeking.
According to Aschburner, Saunders has been negotiating a contract that could run through the 2017/18 season and be worth more than $9MM, if option years are exercised.