According to Phillip Marshall of AuburnUndercover, that seems to be the case.
From the comments, it appears the biggest issue is that Muschamp is not in town to sign the contract. That article was initially behind the paywall, but it appears to be in front for all to see, now. It appears the Muschamp has decided that the Houston head coaching job is not for him and removed his name from the candidate pool there.
One very big development in that article is the news that former Auburn player and Muschamp assistant Travaris Robinson will likely be part of the staff. That just makes it even better.
This is all starting to come together and I am trying to contain my excitement at the potential. A Malzahn offense with a Muschamp defense is a very wonderful thought. It could be downright terrifying to every team on the schedule.
It's a done deal in terms of signed, sealed, delivered, so I stress caution until that is the case. It sure does look like it's happening, though.
Let the Legion of Boom commence.