In a statement to ESPN, Baylor officials called the report "irresponsible" and "premature."
At the same time, officials disclosed that the NCAA investigation into the scandal that cost former Baylor president Kenneth Starr and football coach Art Briles their jobs is "active and ongoing."
The Star-Telegram story claimed the NCAA's multiyear investigation into the Baylor athletic department had taken a "left turn" to the point that school officials are being advised by lawyers to self-impose penalties.
The report said Baylor probably will be charged with lack of institutional control, among other infractions, by the NCAA.
"It is irresponsible to report that Baylor is considering a football bowl ban for the 2018 season when in fact the NCAA investigation into the prior football staff and previous athletics administration remains active and ongoing," Baylor's statement said. "Additionally, it is premature to speculate as to what the University's sanctions will be at this point in time."
The Star-Telegram reported that NCAA investigators recently interviewed Briles, Starr and former Baylor athletic director Ian McCaw.
Briles told ESPN that he was one of about 10 people from Baylor who were interviewed by NCAA officials in May. Starr and McCaw didn't immediately respond to telephone and text messages from ESPN.
The scandal led to multiple investigations of Baylor by the Texas Rangers, McLennan County District Attorney's office, U.S. Department of Education, the Big 12 Conference and the NCAA.
Ten Title IX lawsuits have been filed against the university by a total of 22 women, including 20 who alleged being either sexually assaulted or physically assaulted. Five of the complaints have been settled or dismissed.
The Bears, who went 1-11 under first-year coach Matt Rhule last year, open their 2018 season against FCS opponent Abilene Christian on Sept. 1.