A spokesman for the Pac-10 on Thursday had no comment on a deal, but the Seattle Times reported that the conference and the bowl are "on the brink of hooking up."
The Pac-10 would play a Big 12 team on Jan. 2 starting after the 2010 season.
Talks with the Alamo started before Larry Scott succeeded Tom Hansen as the conference's commissioner on July 1. The Pac-10, which went 5-0 in bowl games after last season, has been criticized for the lack of strength of its postseason games other than the Rose Bowl.
Holiday Bowl Executive Director Bruce Binkowski, reached on vacation in Montana, said the San Diego-based bowl would not be willing to match the Alamo's reported payout of $3 million per team. The Holiday Bowl's per-team payout is $2.35 million.
Binkowski, who said the deal has not been finalized, said the San Diego game would not raise ticket prices to match the Alamo's bid.
"We just didn't feel it was something we wanted to do," Binkowski said.
"We'd rather keep our game as affordable as possible for our fans."
If the Alamo joins the rotation, it would push the Sun Bowl to No. 4. The Pac-10 also has tie-ins with the Las Vegas, Emerald and Poinsettia bowls.
"It's all about money now," Binkowski said of the bowls. "More power to the Alamo Bowl."