Tar Heels coach Roy Williams said on his radio show Monday night that the teams hope to play on Veteran's Day in San Diego on a carrier.
Larry Gallo, a senior associate athletic director at UNC, said Tuesday that a contract isn't in place yet.
"We feel as though all systems are go, we're just trying to finalize" details, Gallo said. "But until you have a contract, a deal hasn't been consummated."
Gallo said discussions also involve the U.S. government and a promoter.
Michigan State athletic director Mark Hollis declined to comment Tuesday, though he spoke in November about the school's hope to play a game on a carrier.
"It's something that we continue to pursue with the Navy," Hollis said. "From our perspective, it would be something where Americans could reach out to those who protect our borders and create a national celebration around it."
The Tar Heels lead the all-time series 10-3, including 5-0 in the NCAA tournament. North Carolina beat Michigan State 89-72 in the NCAA championship game two years ago.