Terms of Walton's contract with the Kings were not revealed. Walton will be introduced at a press conference later Monday.
Despite adding LeBron James to the roster, the Lakers struggled in the 2018-19 season and did not make the playoffs in Walton's third year coaching the men in yellow and purple.
Walton also has experience as an assistant for Golden State, helping the Warriors win the 2015 title and then leading the team to a 39-4 record, including 24 straight wins to open the 2015-16 season, as interim coach while Steve Kerr was sidelined following complications from a pair of back surgeries.
Following Walton's departure from the Lakers, Kerr shared his thoughts on his former understudy.
"They are losing one of the best human beings in the National Basketball Association, they're losing a guy who knows the game as well as anybody I've ever met, they're losing somebody players believe in and players want to play for", Kerr added.
"There's a great young core down there".
The Kings had an opening on the bench as they fired head coach Dave Joerger last week after three seasons and a 98-148 overall record. "But moving forward, I just felt like we had to go a different direction". "We have to play that way".
Sacramento had its most wins since going 44-38 in 2005-06 during coach Rick Adelman's final season.