nola.com:

Les Miles has an offer from Arkansas for the head football coaching job, a source close to LSU confirmed to the Times-Picayune/NOLA.com Tuesday. The offer is reportedly for five years and $27.5 milliion."They made a serious offer," the source said "(Athletic Director) Joe (Alleva) is meeting with his (Miles') agent and the discussion is ongoing."

ReadMore....

EDIT:

Here is some background and connective tissue between Miles and Arkansas and why there may be mutual interest:

• Arkansas Athletic Director Jeff Long began his administrative career at Michigan after he was hired by Bo Schembechler, the man who recruited Miles to play for the Wolverines in the 1970s. Long was on the UM staff after Miles returned to his alma mater as an assistant coach from 1987-94.
  
  
• One the Razorbacks' most influential and wealthy alumni is Dallas Cowboys owner Jerry Jones, who played on Arkansas' 1964 national championship team. Miles was a Cowboys assistant coach from 1998-2000 and he developed a strong bond with the owner.

doubtful

Arkansas has ZERO interest in Les Miles.  Very bad fit for the program.
It would immediately alienate a HUGE portion of the fans that have
never forgiven the Ar "Kansas" comment.

I'd be willing to bet the only one interested in this rumor being out
there is Miles agent in an effort to use the Arkansas opening as a
means to get his coach a raise.

Makes no sense.  Why would Miles move now.  If he was unhappy, he
would have gone to Michigan when it was open.

Besides that the Arkansas AD has had 7 months to identify, contact
and work out the details for his target and we have heard ZERO info
on who that could be, so why all of a sudden is the cat out of the bag
so to speak after all that time. Does not make sense.  This is agent
work trying to force LSU to claw up more money.

.
.

This HAS to be a case of his agent throwing stuff out there to get him more money.

He'd have to be crazy!

He would leave what I consider the best job in college football? He's not that stupid I don't think.

Well -- I understand LM is going for a raise for his assistant coaches, and it's about time to give him one himself. I would have thought he got one last year . . ..

I can't see him as a fit at Ar-Kansas under any circumstances, although he was fairly complementary about the atmosphere in the stadium at Fayetteville.

I wish him and his coaches a nice raise out of this . . . and find it interesting that the Hawgs tried for this. It is something that may blow up in the face of the Arky A. D.

TexasTiger nails part of it.

Les Miles isn't interested in the Arkansas job.

However, in no way is Arkansas interested in Les, either. This whole deal was manufactured by the LSU AD. For whatever reason is somewhat uncertain.  

KRDog wrote: He would leave what I consider the best job in college football? He's not that stupid I don't think.

KRDog -- we (even fans who love him) may not understand him as a coach, but there's nothing "stupid" about him. His mind seems to process a little differently from many of us, so he seems a bit of an oddball at times. But you have to ask yourself, honestly isn't Louisiana a bit of a state of oddballs, and therefore, given his success isn't he a really good fit for LSU?

I'm not sure how much money motivates the man, but it's just very hard for me to imagine a better man who's a better coach coaching LSU. Buddy Hebert notwithstanding, if I had a son capable of playing at this level of college football, there is no coach I know of I'd be more willing to entrust my son to. He tends to keep us out of the NCAA's crosshairs. He seems to keep pretty good discipline among his players given the temptations confronting college athletes.

In some ways, to quote Randy Newman's song "Good Old Boys", which IMO every LSU grad should know by heart along with the Alma Mater, "He may be a fool, but he's our fool. If they think they're better than him, they're wrong."

In my heart, I'm still one of those "College men from LSU, went in dumb, come out dumb too."