The Chicago Sun-Times reported Collins would be hired to coach the Bulls, "sooner rather than later."
"I have been in contact with Doug Collins in regard to our head coaching position," Paxson said in a statement. "Contrary to some reports that are currently out there, we have not reached an agreement.
"Right now, his commitment is covering the Western Conference Finals for TNT. When that series concludes, we will continue our dialogue. In the meantime, I will continue to talk to other candidates and review our options."
The Bulls have been in need of a coach since Jim Boylan was fired at the end of a 33-49 season.
Collins coached the Bulls from 1986-89 and took the team to the Eastern Conference finals in 1989. He also coached the Detroit Pistons and the Washington Wizards. His coaching record over parts of eight seasons is 332-287.
The Bulls recently landed the top overall pick in this year's NBA draft. Collins, himself, was the top NBA draft in 1973, going to the Philadelphia 76ers.