Kevin Pritchard was reportedly named the Indiana Pacers’ new general manager on Tuesday. (Sam Forencich/Getty Images)

The Indiana Pacers reportedly announced Tuesday afternoon that they have parted ways with General Manager David Morway, according to a tweet from Ken Berger of CBSSports.com, and the team is expected to appoint former Portland Trail Blazers General Manager Kevin Pritchard as Morway’s replacement. Berger also tweeted Tuesday that news of Pritchard’s appointment to general manager could be confirmed on Wednesday when the team has scheduled a press conference.

Pritchard served as the Blazers general manager from 2007 to 2010 and is most known for, and perhaps most criticized for, selecting Greg Oden in the 2007 NBA Draft after only three months as general manager. In July 2011, Pritchard was named the director of player personnel for the Indiana Pacers.

The Pacers are also expected to use the press conference on Wednesday to announce the return of Donnie Walsh as team president, who joined the team in 1984 as an assistant and has since served various roles within the organization, including president, CEO and general manager.

Pacers finally announce GM David Morway's departure from team in a statement.—
Ken Berger (@KBergCBS) June 26, 2012

Former president Donnie Walsh is expected to return, with Kevin Pritchard to be named GM. But some aspects of power transfer unresolved.—
Ken Berger (@KBergCBS) June 26, 2012

The Indiana Pacers have hired Donnie Walsh to lead their free agency efforts. (Mike Stobe/Getty Images)

Days after rumors first popped up about the possibility, the Indiana Pacers have hired Donnie Walsh for a front-office position, the New York Daily News‘ Mitch Lawrence reported Monday night.

Walsh, the former Indiana CEO, will return to the Pacers to lead the front office’s efforts in signing free agents, according to the report. The free-agency period begins on Sunday.

Lawrence writes in the Daily News that Walsh’s hire doesn’t mean Larry Bird is out as team president:

One indication that the NBA icon likely is staying is that Kevin Pritchard is expected to be promoted from director of player personnel to general manager. Formerly the GM in Portland, Pritchard was brought to the organization by Bird. GM David Morway has not been around the team in recent weeks and the team has not explained his absence.

The Pacers’ biggest priorities in free agency are re-signing two of their own restricted free agents — point guard George Hill and center Roy Hibbert. The Dallas Mavericks have reportedly expressed interest in Hibbert. The Pacers could match any offer for both players.

Walsh was last in an NBA position with the New York Knicks, where he helped lead the franchise out of salary-cap disaster to sign Amar’e Stoudemire in 2010. Walsh clashed with Knicks owner and Madison Square Garden chairman James Dolan though, and he declined a reported 40 percent pay-cut to stay with the Knicks.

Multiple sources tell Mike Wells of the Indianapolis Star that former Indiana Pacers CEO Donnie Walsh, who left the team in 2008 to become president of the New York Knicks, could return to the franchise in some capacity.

Wells adds that it is uncertain what role Walsh would have since Larry Bird is firmly entrenched as team president and reports have Bird wanting to promote Kevin Pritchard to general manager.

Walsh, 71, has attended some of the team’s pre-draft workouts with prospects, according to sources. He spent 24 years with the organization in his first go-round.