According to ESPN, he is close to accepting the top spot with the Houston Texans.
ESPN said O'Brien interviewed with the Texans earlier this week and has emerged as the overwhelming favorite to become the next coach of the team. The report also said, the two sides are working to get a deal in place within the next week.
As of this writing, no other media outlet had reported the same information. Many, though, had cited ESPN's report.
If O'Brien leaves Penn State for Houston, the Texans will be on the hook for his $6.5 million buyout.
O'Brien has not returned a message requesting an update on his status.
Penn State sources contacted by FOS said they have no knowledge of any pending deal between O'Brien and the Texans.
O'Brien spent six years as an assistant with the New England Patriots before taking over the Nittany Lions in January of 2012, as the Sandusky scandal was still unfolding. Even after the program was hit with significant NCAA sanctions stemming from the scandal in July of that year, he kept things together.
Penn State went 8-4 in 2012 and 7-5 last season.