The Detroit Red Wings have given him permission to talk to other NHL teams about coaching opportunities in a window that is open until May 25. That doesn't guarantee he is leaving Detroit, just that he is exploring his options.
"If there is a better situation out there for Mike Babcock, he's earned the right to explore that," Red Wings general manager Ken Holland told reporters on Friday. "We made a contract offer to Mike last June and couldn't find a solution. I went to him again in January and made another contract extension offer, and Mike felt, at that point in time, that he appreciated the offer but wanted to wait until the end of the year. That was the only conversation that we really had this winter.
"When we went to Grand Rapids (last weekend), spent four hours together in the car, we had a great talk. I told Mike that we'd like to re-sign him, we want him back. He would like the opportunity to explore any possibilities that are out there for him. Certainly, we are a possibility."
Holland added that if Babcock leaves, Grand Rapids Griffins head coach Jeff Blashill would be a "legitimate candidate" to take over behind the bench.
There are six coaching vacancies in the NHL with the Edmonton Oilers, Buffalo Sabres, Toronto Maple Leafs, Philadelphia Flyers, New Jersey Devils and San Jose Sharks looking to hire for next season.
All of have varying levels of appeal, particularly the Oilers, Sabres and Leafs.