The conference announced the decision Wednesday after university presidents approved the new moniker earlier in the day.
A University spokesman said the potential for a four-year ban on playing football was floated during discussions between Penn State President Rodney Erickson and NCAA officials.
Majerus’ current six-year contract is due to expire following what’s become a highly anticipated 2012-13 season.
While the Aggies are looking to improve their standing, the Mustangs are ready to prove that they belong in a BCS conference.
If Texas A&M leaves the Big 12, the move could create a shake-up across college sports.
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