For what it's worth, that's what I just heard. Here's where it was reported. http://texas.rivals.com/content.asp?CID=1585894 In a related but thoroughly unsubstantiated rumor, I also heard Nick Saban closed on a house in the Austin area. Who knows.
Basically they can select almost any coach in the country they want. There's only a small handful of coaches who are in a position that they wouldn't leave in a heartbeat for a chance to coach at Bama. If indeed he does bolt for UT.