Michael Scotto of The Athletic reported earlier Thursday that the Magic expressed interest in hiring Izzo to fill their vacant head-coaching position.
Orlando fired Frank Vogel in April after he spent two seasons as the team's head coach. The Magic went 54-110 during his tenure, including a 25-57 mark this season.
The 63-year-old Izzo has been MSU's head coach since 1995-96 and put together one of the most impressive resumes in college basketball during that time.
Izzo is 574-225 with the Spartans, and he has led them to 21 consecutive NCAA tournament appearances.
That includes seven Final Fours and one national championship.
While Michigan State is among the premier college basketball programs, the university has been shrouded in controversy as of late.
Last week, MSU reportedly reached a $500 million settlement with victims of former Michigan State physician Larry Nassar's sexual abuse.
In February, ESPN's Paula Lavigne and Nicole Noren published a report regarding Michigan State football and basketball athletes having their arrest records covered up by the school.
With Izzo reportedly out of the running, the Magic will turn their attention to other options as they look to end a six-year playoff drought.