Bill O'Brien is reportedly negotiating a deal to become the Houston Texans' next head coach and Penn State is already bracing for their coach's departure.

Unnamed sources told ESPN that O'Brien's discussions with the Texans are intensifying and early contract negotiations are taking place. The sources also said the Texans came to O'Brien's home in Cape Cod the week after Christmas and hope to finalize a contract some time next week.

O'Brien is under contract at Penn State, but his buyout was significantly reduced, meaning the Texans would only have to pay the school $6.48 million instead of the previous figure, $19.33 million. The Texans' search is active and, although O'Brien is seen as the favorite, they have meetings scheduled with San Diego Chargers' offensive coordinator Ken Wisenhunt and former Bears' head coach Lovie Smith.

According to PennLive.com, O'Brien has met with his freshman quarterback Christian Hackenberg, but their discussion was private. In a separate report, Thomas Holley, a defensive end recruit for Penn State, told 247 sports that O'Brien specifically stated he will stay in State College.

"I just off the phone with him," Holley told 247 Sports. "He said he 'isn't going. It's not true.'"

Penn State is already prepared for O'Brien's departure. After his first season coaching the Nittany Lions, O'Brien met with the Cleveland Browns and Philadelphia Eagles. Part of his return in 2013 was contingent on reducing his contract buyout.

NFL.com's Ian Rappaport reported Penn State athletic director David Joyner is deciding on whether or not to travel to Tampa to meet with Buccaneers' head coach Greg Schiano. Also under contract, Schiano denied his connection to the Penn State job, but regardless, the school seems to be targeting him.

The Texans are reportedly very pleased with O'Brien's track record, sources told ESPN. From his days as the New England Patriots' offensive coordinator to the helm of a scholarship-depleted Penn State team, the Texans like O'Brien's ability to work with quarterbacks.

The Texans' general manager Rick Smith is reportedly making the rounds at this year's bowl games to watch young passers like Oregon's Marcus Mariotta (who said he will return to school), Ohio State's Braxton Miller, UCLA's Brett Hundley, UCF's Blake Bortles and Baylor's Bryce Betty (also returning to school).

Smith has already taken in Louisville's bowl win over Miami, reportedly, and watched his favorite draft target Teddy Bridgewater dominate in his team's win.