The Magic and Steve Clifford mutually agreed to part ways earlier this month after three seasons.
Kidd recently withdrew his name from consideration for the Portland Trail Blazers head coaching job. He is also drawing interest from the Boston Celtics, among others.
The 48-year-old began coaching after a Hall of Fame career in the NBA. He compiled a 183-190 record with the Brooklyn Nets and Milwaukee Bucks before joining the Lakers as an assistant in 2019.
Orlando is also reportedly considering San Antonio Spurs assistant Becky Hammon, Los Angeles Clippers assistant Kenny Atkinson, Milwaukee Bucks assistant Darvin Ham and Brooklyn Nets assistant Ime Udoka.