Kubiak denied a report out of Boston that Sherman had accepted the job.
"That story's false," Kubiak told the Chronicle. "Mike hasn't decided anything yet."
At Texas A&M in 1992-93, Kubiak coached the running backs and Sherman the offensive line on R.C. Slocum's staff.
"I've known Mike for a long time," Kubiak said. "He's a great coach who can really help us. "I told him how much I'd like to have him, but I told him to take his time and let me know when he makes a decision. Right now, I'm just giving him some space."
Sherman was fired by the Packers after a 4-12 the season in 2005 despite leading them to four playoff appearances and three NFC North titles. He is scheduled to receive base salaries of $3.2 million in 2006 and 2007 as part of a two-year extension he signed last August. If he accepts another coaching job in the NFL, his salary from that team will be deducted from what the Packers owe him.
Sherman interviewed for head-coaching jobs with the Buffalo Bills and the New York Jets. He turned down offensive coordinator offers from both teams.
The Texans are set to hire Richard Smith as their new defensive coordinator. Smith began his NFL coaching career with the Oilers in 1988.
Smith joins offensive coordinator Troy Calhoun, a former offensive assistant at Denver, as the new coordinators on Kubiak's first staff.
Smith, who has 18 years of NFL coaching experience, was Miami's co-defensive coordinator last season when the Dolphins finished 9-7 in Nick Saban's first season as head coach.