TORONTO -- New York Rangers forward Theo Fleury will likely become an unrestricted free agent July 1 after the Rangers decided not pick up his $7 million contract option.

Rangers spokesman John Rosasco said Sunday at the NHL draft in Toronto that the club failed to pick up an option on Fleury's contract by a negotiated June 15 deadline.

Fleury scored 24 goals and added 39 assists in a season marred by behavioral problems on the ice. Fleury had previously said he was willing to take less money to stay in New York.

He could wind up in Phoenix, where Coyotes' managing partner Wayne Gretzky spoke highly of Fleury.

"He's a great player and there's no one that's gone to bat for him more than I have,'' Gretzky was quoted in Sunday's edition of the Arizona Republic. "We're going to sit down next week and talk about it and see what happens.''

In heading up Canada's Olympic hockey team last winter, Gretzky was influential in making sure Fleury was on the roster.

Coyotes general manager Michael Barnett said Sunday that he's aware of media reports that Fleury will end up a free agent, but said it was premature to discuss Phoenix's interest.

"This week we'll start to look at what July 1 will have and go from there,'' Barnett said. "I wouldn't say anything is certain by any means.''

Pick voided
The Edmonton Oilers are seeking compensation from the NHL after the league voided the team's fourth-round selection of forward Robin Kovar.

Shortly after picking Kovar 123rd overall, the NHL ruled that Kovar was not eligible to be drafted because he had failed to "opt in.''

That ruling didn't satisfy the Oilers, who questioned why Kovar's name was present in the NHL computer database of players eligible to be drafted.

"The (computer) system is set up so that you cannot draft an ineligible player. It just stops you,'' said Oilers spokesman Bill Tuele. "That didn't happen. So we went ahead and drafted him.''

Tuele said the NHL has admitted to a technical error and that the Oilers will be compensated with what will likely be a fourth-round pick in next year's draft.

"We've gotten clear indications from these guys that there will be compensation,'' Tuele said.

Kovar, a native of the Czech Republic, spent last year playing with Vancouver of the Western Hockey League, where he had five goals and 15 points in 35 games.

Capitals close to a new coach?
After spending the last month talking to as many as 12 potential candidates, Capitals GM George McPhee said he's ready to appoint his new coach within the next week.

The Capitals have been without a coach since Ron Wilson was fired last month.

McPhee would reveal little else, even refusing to discuss what type of philosophy the new coach will have in fear that information would point to the candidate.

"I don't believe in giving away your ammunition,'' McPhee said. "Why tell other people who you want?''

He added that the candidate has already been informed of his pending appointment.

Change of scenery
The Toronto Maple Leafs traded little-used center Jeff Farkas to the Vancouver Canucks for center Josh Holden, who didn't crack Vancouver's lineup this past season.

"This is really just giving two kids a chance with another organization,'' Toronto general manager and coach Pat Quinn said. "Holden hit the wall in Vancouver. We kind of feel that Farkas needs a chance to move somewhere else, and that was the primary motivation behind the move.''

Farkas had two goals in six games with Toronto last season.

Holden, drafted in 1996, scored four goals and had nine assists in parts of three seasons.

"Some time guys just need a new address. That might be the case with both of these players,'' Vancouver general manager Brian Burke said.

Odds and ends
Pittsburgh traded enforcer Krzysztof Oliwa to the New York Rangers for future considerations. Oliwa had two points and 150 penalty minutes in 57 games. ... The Ottawa Senators acquired defenseman Josef Boumedienne from Tampa Bay in exchange for a seventh-round draft pick. Boumedienne played in just four games this past season. ... The Detroit Red Wings took Swedish defenseman Jonathan Ericsson with the 291st and last pick in the draft.