Whether Larranaga is leveraging for a better deal from George Mason or on the verge of moving to Miami is unclear, both sources said. But discussions are ongoing and the 61-year-old New York native is Miami's top target.
Miami is searching for a replacement for Frank Haith.
Haith left earlier this month to replace Mike Anderson at Missouri.
Larranaga has spent 14 seasons at George Mason and famously led the school to the 2006 Final Four.