The Chicago Tribune says that Texas has already informed its coaches that Texas will be joining the Pac 10.
Here is how they claim it would work:
"The new formation would go into effect in the fall of 2012 with the schools split into eight-team divisions. The West Division will likely be a throwback to the old Pac-8: USC, UCLA, California, Stanford, Oregon, Oregon State, Washington State and Washington.
Arizona and Arizona State, which joined the league in 1978, would join the six Big 12 newcomers. In football, the division leaders would meet in a conference championship game.
Each division could play all seven teams in their division — keeping traditional rivalries intact — with two cross-over games.
The Rose Bowl still is obligated to take the champion of the Big Ten and Pac-10, no matter the configuration."