Forde reported that Florida officials met with Kelly in New Hampshire on Sunday, but they are now focusing their attention on other candidates.
George Schroeder of USA Today reported Wednesday that Kelly was considering offers from Florida and UCLA after turning down Tennessee.
On Tuesday, ESPN's Mark Schlabach reported that Kelly met with UCLA officials and Hall of Fame quarterback Troy Aikman was putting the "full-court press" on Kelly to choose UCLA.
Per Forde, Central Florida head coach Scott Frost may now be Florida's top choice with Kelly reportedly out of the running. Forde added that UCLA is now the likeliest landing spot for Kelly.
The 53-year-old Kelly is currently an ESPN analyst, but he spent the previous eight seasons as a head coach in college and the NFL.
In four years at Oregon from 2009 through 2012, Kelly posted a 46-7 record, which included a trip to the BCS National Championship Game during the 2010 season.
After leaving Oregon, Kelly went 26-21 in three seasons with the Philadelphia Eagles, and made the playoffs once.
Kelly was hired by the San Francisco 49ers in 2016, but was fired after one season due to a 2-14 record.
Florida parted ways with head coach Jim McElwain in October after a 3-4 start, and Randy Shannon has served as the team's interim head coach.