The school is working on terminating Hill's contract with cause, meaning the school is seeking not to have to pay the $1.8 million still owed over the remaining three years of his contract, sources added.
It remains uncertain when an announcement will be made Thursday, but the school is working toward making am announcement by the end of the week. It is possible the buyout could be negotiated to avoid a legal battle and save both sides potential public embarrassment.
Also, Pernetti is not expected to grant any transfer requests to disgruntled players, or allow recruit Gilvydas Biruta out of his binding national letter of intent, until a basketball coach is in place.
The transfer news came on the heels of junior-to-be guard Mike Rosario requesting a release form his scholarship to pursue a transfer to another school, with Florida and USC two possible destinations.
Rosario met with Pernetti on Wednesday to discuss the issue, but was not given his release. Furthermore, sources said players were told there is a team meeting Thursday afternoon. Hill is expected to address the team.
Rutgers is not publicly commenting on the matter because of an ongoing internal investigation into Hill's behavior at last Thursday's baseball game against Pittsburgh, when he reportedly used profanity while arguing with members of the Panthers coaching staff while on the field.
In response to the incident, and a report Pernetti spotted Hill at a Rutgers baseball game two days later despite being told to stay away from the field for two days, Rutgers has begun the process of firing Hill with cause, sources said.
Calls to Hill's cell phone have not been returned.
In terminating a contract with cause, the school will have to prove Hill breached his contract, which includes behavioral clauses.
The contract states Hill could be fired with cause for "any willful misconduct, act of moral turpitude, or other conduct, as determined by the director (of athletics) and the president of Rutgers …that brings or tends to bring shame or disgrace to Rutgers."
According to published reports, Rutgers is compiling a list of transgressions to strengthen its case to fire him with cause.