The 67-year-old announced his retirement earlier this week following a 23-season coaching career in the NBA, including the last three with the Timberwolves.
Saunders, who was the team's coach between 1995 and 2005, told ESPN: "Ideally right now we're going to do a search. The search isn't just coming to talk to me. We'll sit down and put together a list, see the interest those people have and we'll make decisions based on that.
"I do know anytime you can be in the NBA and have the opportunity to coach at this level, a lot of people would jump at that opportunity.
"I believe I have a pretty broad knowledge of a lot of those coaches. Because of that I'm looking forward to it, because I do have a vision of what I believe that a team needs to be to be successful, and it's a matter of having someone who shares that vision."
Saunders is the only coach to have led the Timberwolves to the playoffs.