Sources told ESPN.com that Malone, who had his first interview with the Nuggets last week before the start of the NBA Finals, has solidified himself as a top candidate for the job alongside Nuggets interim coach Melvin Hunt.
It remains to be seen whether former Suns, Knicks and Lakers coach Mike D'Antoni will likewise get a second interview for the post after sitting down with Nuggets officials last week as well.
ESPN.com reported last month that the chances of Hunt retaining the job full time have improved in recent weeks. Ty Lawson and Kenneth Faried are among the veterans in Denver wbo have publicly lobbied for Hunt to fill the post permanently.
The Nuggets possess the league's last remaining coaching vacancy, after New Orleans (Alvin Gentry), Orlando (Scott Skiles) and Chicago (Fred Hoiberg) made their hires in recent days.