According to a published report, Van Gundy turned down the opportunity to coach the Pacers.
"It's true, I decided against it," Van Gundy told the Indianapolis Star. "The Pacers are a great organization. The best thing about the whole situation were the people. Larry [Bird], Donnie [Walsh] and [David] Morway are all great people."
Van Gundy is still under contract with the Heat until the end of the 2007-08 season.