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We now have a second report saying that Jon Gruden has told Tennessee that he will not be the next head coach in Knoxville. And given that the CBS Sports report comes from its NFL insider, it's a pretty good bet that the source is someone close to Gruden. (Just as likely, it could be coming from This Guy himself.)
The Volunteers could make another run at Gruden, but for now it seems Gruden won't be joining the team.
That might not be as dumb a move as it sounds. By most accounts, Nick Saban eventually turned down Mal Moore only to reconsider when the Alabama athletics director was insistent. But Gruden is also a hot commodity among NFL general managers, which means it could be harder for Tennessee to get him to come to Knoxville just by refusing to go away.
It's also worth noting that Mal Moore turned his attention to other candidates before coming back around to Saban. That's likely where Tennessee's search is headed right now.