Per Shams Charania of The Athletic and Stadium, Lue and the Pelicans are meeting on Friday.
Lue has made himself available for a number of teams that are replacing their head coach this offseason.
Per Marc Stein of the New York Times, Lue is seen as the "early favorite" to replace Doc Rivers as head coach of the Los Angeles Clippers. He interviewed with the Philadelphia 76ers on Tuesday, according to Keith Pompey of the Philadelphia Inquirer.
The Sixers ultimately agreed to a five-year deal with Rivers to hire him as Brett Brown's replacement, per Wojnarowski.
Lue certainly knows the Clippers well after serving as an assistant on Rivers' coaching staff this season. He has experience taking over championship-ready teams, leading the Cleveland Cavaliers to 2016 NBA title after replacing David Blatt midway through the 2015-16 season.
The Pelicans are in the early stages of what's expected to be a fruitful rebuild. Their core of Brandon Ingram—who is eligible for restricted free agency this offseason—Zion Williamson, Lonzo Ball, Jrue Holiday and JJ Redick has the ability to compete for a playoff spot in the Western Conference next season if things come together.
Lue owns a 128-83 career record as head coach of the Cavs from 2015-19. He led the team to three NBA Finals appearances in each of his first three seasons.