The NHL is progressing in its investigation of the Arizona Coyotes over pre-draft fitness testing allegations and a ruling could come before Monday's second phase of the draft lottery if necessary, TSN Hockey Insider Darren Dreger reports.

The Coyotes lead the Nashville Predators 2-1 in their best-of-five qualifying round series. Whoever loses the series will have a 12.5 per cent chance of winning the first-overall selection on Monday.

Dreger first reported in January that the NHL was investigating the Coyotes for alleged recruiting violations regarding draft-eligible players. He added in February that it was believed there were at least 20 incidents of the Coyotes fitness testing draft-eligible players, noting that each violation could carry a fine of $250,000 or more.

"We are aware of the reports," the Coyotes said in a January statement. "We have discussed the matter with the NHL and we will have no further comment at this time.”

The Coyotes traded their first-round pick to the New Jersey Devils to acquire Taylor Hall during the season, but the selection is lottery protected in the event it falls in the top three.

John Chayka, who spent the past four seasons as general manager of the Coyotes, terminated his contract last month. Steve Sullivan is currently serving as interim general manager of the team.