Chris Grant, assistant GM to Ferry for the last five years, will replace him.
Danny Ferry, who has resigned as GM of the Cavs, looks on during the press conference when Antawn Jamison joined the team late this season.
Updated: 2:34 p.m.
CLEVELAND, Ohio -- In a decision that is surprising and perhaps throws the Cavaliers into more uncertainty, Danny Ferry resigned as the team's general manager today.
In an interview with the The Plain Dealer, Ferry said the decision was mutual after the sides had talks about a new contract earlier this week. Ferry's five-year deal that he signed when he came to the team in 2005 was scheduled to expire at the end of June.
Ferry will be replaced by top assistant Chris Grant, who has been functioning in the role of a co-general manager for the last several years.
It will now be Grant and Gilbert who hire the next coach after another of the organization's top leaders, Mike Brown, was fired last week.
"I thought it was critical for there to be as much clarity as possible with the basketball operations moving forward," Ferry said. "In hiring a coach it is important for the person to know the structure and who they're partnering with so they can continue to build on the high level that is here now."
Ferry and Gilbert, who will hold a press conference later today, enjoyed a very close relationship over the last several years, but that seemed to change in recent weeks. After the Celtics eliminated the team in the playoffs, Ferry made a case behind the scenes for Gilbert to keep Brown.
When Ferry took the job he pushed to have full personnel control in his contract, even walking away from the table at one point during negotiations. With another contract on the horizon and the uncertainty over LeBron James' future with the team weighing on the franchise, it isn't clear whether Gilbert was ready to cede as much control this time around.
Ferry would not comment on the specifics of what led to the decision.
"At the end of the day," Ferry said, "it was the right time for me to move on."
Gilbert issued the following statement in a team release:
"For five years, Danny Ferry was instrumental in leading the establishment of a culture, process and professionalism that has become part of the fabric of the definition of 'who' are the Cleveland Cavaliers. Danny worked extremely hard to create this strong foundation that we will continue to build upon going forward with much gratitude and appreciation. This solid foundation is evident by the natural and clear choice to choose his close associate, Chris Grant, whom Danny worked in partnership with for his entire five years leading the Cavaliers front office, to succeed Danny as the Cleveland Cavaliers new general manager."
"On behalf of the entire Cleveland Cavaliers organization, I would like to thank Danny and hope that he and his family experience nothing but continued health and success in the years ahead."
Chris Grant With the franchise heading for a makeover, having a firm succession plan for general manager does have value to the team. Grant has run the Cavs draft since joining the team with Ferry in 2005 and over the last few years has been involved in contract and trade talks.
He turned down a chance to become the general manager of the Atlanta Hawks two years ago, in part to stay with Ferry.
"Our basketball staff was so intertwined, that this will be a natural transition for Chris," Ferry said. "He's done everything that a GM does at every level. Our players know that, our staff knows that, and I'm extremely confident he'll be a strong leader for this basketball team."