"We could not come to terms on an extension," D'Antoni told reporters, according to the Houston Chronicle. "I have my contract still. I'm looking forward to the year and having a great season."
D'Antoni said he plans to finish the final season of his current contract in the 2019-20 campaign.
"There are no problems," D'Antoni told reporters. "It doesn't make me coach any different or have any more worries. So, no, it doesn't cause any problems."
Rockets owner Tilman Fertitta said the 68-year-old coach was offered a one-year extension worth about $5 million, with an additional $1 million per playoff round he won, according to the Houston Chronicle. The base salary offered was a slight raise, but under the current market of other veteran coaches like Terry Stotts and Dwane Casey.
D'Antoni completed his third season with the Rockets this year. He led the team to a 53-29 record before losing to the Golden State Warriors in the NBA Western Conference semifinals.
D'Antoni has averaged 58 wins in his three campaigns with Houston, including four playoff series victories and an appearance in the Western Conference finals last year. Golden State eliminated the Rockets in seven games.
"I think we're going to have a great year," D'Antoni said. "And we'll go from there."