The move comes with the 56-year-old Granato still having two seasons left on his contract, which featured an extension that kicked in to start next season.
The Arizona Coyotes will likely be sold to Utah Jazz owner Ryan Smith shortly after the team's final game and will include a provision reportedly guaranteeing current owner Alex Meruelo an expansion team if a new arena is built within five years.
The team hopes to buy the 110-acre (445,154 square meter) plot of land on Northwest corner of Scottsdale Road and the Loop 101 in north Phoenix and build a privately funded arena.