The Bills on Tuesday fired Dick Jauron and named defensive coordinator Perry Fewell the interim coach.
Shanahan won a pair of Super Bowls with the Denver Broncos. He had two losing records in his 14 seasons with the Broncos. His career record, including two years with the Oakland Raiders, is 146-98.
The Broncos fired Shanahan for finishing 8-8 last year and failing to make the playoffs despite a 4-1 start and being three games above .500 in mid-December. He decided to take a year off to contemplate his options but stayed around the game. He was Bill Belichick's guest at New England Patriots training camp this summer.
Shanahan would be an unusual hire for the Bills because Wilson has a history of hiring up-and-comers or retreads who don't command a big salary or organizational control. Shanahan, who would have his pick of most openings for 2010, would expect big money and would insist on being the loudest voice within the organization.
Schefter also mentions former New Orleans Saints and St. Louis Rams head coach Jim Haslett and former San Diego Chargers head coach Kevin Gilbride as possibilities. Haslett played linebacker for the Bills. Gilbride is a former Bills offensive coordinator.
Schefter, a former Broncos beat writer for the Denver Post, co-wrote a book "Think Like a Champion" with Shanahan in 1997.