INGLEWOOD, Calif.--The Los Angeles Lakers, the NBA's glamour team that lost players to illness and injury, lost their coach today when Mike Dunleavy resigned to return to the Milwaukee Bucks, this time as head coach.

Dunleavy, a former player and assistant coach for the Bucks, spent two emotional seasons guiding the Lakers. During that time, Magic Johnson retired because he contracted the AIDS virus, and several other stars were injured as the Lakers barely made the playoffs. They lost in the first round to Portland.

In his first season after replacing Pat Riley, Dunleavy led the Lakers to the NBA Finals, where they lost to the Chicago Bulls.

The Lakers confirmed Dunleavy's departure yesterday, and the Bucks later confirmed his hiring.

"The Milwaukee Bucks have reached an agreement with Mike Dunleavy, which will provide his services as head coach for the next eight years," said Scott Johnson, assistant publicity director for the Bucks.

Dunleavy was an assistant with the Bucks for three seasons until he left in June 1990 to become Lakers coach.

He had been rumored to be a candidate to return to the Bucks since the departure of Del Harris as vice president of basketball operations April 7 and the firing of Frank Hamblen as Bucks coach April 23. Milwaukee was 31-51 last season.

The Milwaukee Sentinel reported that the Bucks are believed to be paying the Lakers at least one draft choice and cash for the rights to Dunleavy.

Dunleavy said last month he expected to return as Lakers coach, but said he had deep feelings for Milwaukee and the Bucks' organization.

A possible factor in favor of Dunleavy returning to Milwaukee is the feelings of his wife Emily, whom a source said did not like the lifestyle in Los Angeles and greatly preferred living and raising their sons in Milwaukee.

Another Larry Making It Big: A quiet, 30-something forward named Larry is playing a key role in the Boston-Cleveland playoff series.

The surprise is that it's Larry Nance, not Larry Bird, who in unassuming fashion is responsible for a lot of excitement in the series that's tied 2-2 going into tonight's game at Richfield Coliseum.

"I don't listen to talk shows and I don't get the paper," said Nance, who had 32 points, seven rebounds and two blocked shots in 49 minutes of a 114-112 overtime victory Sunday at Boston. "I learned that when I played in Phoenix.

The 33-year-old Nance, a 10-year NBA veteran who played for the Suns before coming to Cleveland in 1988, is shooting 59.7 percent in the series and averaging 22.3 points.

Nance was 13 for 16 from the floor in Sunday's game at Boston Garden, while the 35-year-old Bird returned from back problems to score 2 points on 1-for-5 shooting in 17 minutes.