Update:

The University of Oregon is reportedly expected to offer Michigan State basketball coach Tom Izzo the largest contract in college basketball,

A source from the Oregon athletic department

in a report Sunday night that Nike chairman Phil Knight – an Oregon booster and alumnus – will be “backing” the contract.

The proposed offer is expected to match or surpass Kentucky coach John Calipari’s record-setting contract, after he signed an eight-year, $31.65 million deal last year. Izzo currently makes more than $3 million annually and earns $1 million bonuses each year he remains with the Spartans.

As of Sunday night, there were no known discussions between the parties and no official offer had been made, the TV station reports. Oregon cannot interview Izzo or make any formal offer until Michigan State is finished playing in the NCAA Tournament.

The Spartans, who on Sunday beat Tennessee, will meet Butler in the Final Four on Saturday in a meeting of two No. 5 seeds. It will be the sixth time in 12 years that Izzo has taken Michigan State to the Final Four.

Former Ducks athletic director Pat Kilkenny, who is leading the coaching search after Mike Bellotti's resignation as athletic director, said he expects to fill the school's vacancy by the Final Four -- a week from now,

.

Kilkenny reportedly traveled from New York to Houston on Sunday, where it is believed he met with Pitt coach Jamie Dixon. Kilkenny is said to be in Houston to meet with Tom Penders, who resigned last week as coach of the Houston Cougars, and Houston Rockets coach Rick Adelman.