The sources told FOX 26 Arizona State has been in discussions with Sumlin's agent, Trace Armstrong.
"We've dropped from further consideration and moved on," said the Arizona State source who requested anonymity.
Sumlin led the Cougars to a 12-0 record this season and Houston, with a win in the Conference USA Championship game, is in position for its first BCS Bowl invitation. Houston is 35-23 in four seasons under Sumlin and his current team lead the nation in total offense (613.3 yards per game), scoring (52.7 points per game) and passing yards (449.7 per game).
Arizona State is said to be interested in Kirby Smart, Charlie Strong, Larry Fedora and Chris Pedersen moving forward.