WBIR Channel 10 in Knoxville reported that UT terminated Bruce Pearl's contract in September.
A new contract is currently in negotiations, however, without a contract, Pearl can be fired or quit at any time.
According to the WBIR release, Pearl's contract was terminated around the time that he took a 25 percent pay cut ($1.5 million) for lying to NCAA investigators about recruiting violations.
A UT Athletics spokesperson confirmed to WBIR that Pearl is working under a Letter of Appointment, which is what many university employees work under.
Pearl said he's not concerned about his job status at SEC Media Day earlier today.
Wes Rucker of the Chattanooga Times Free Press has Tweeted quotes from UT Men's Athletic Director saying they are "finalizing" his Pearl's new contract.
Pearl's contract was set to expire July 30, 2015.