Foge Fazio, the University of Pittsburgh's football coach, will return for the 1985 season despite the Panthers' 2-7-1 record and fans' growing criticism of his ability.

Pitt Athletic Director Ed Bozik, saying he wanted to "put to rest all speculation and discussion," said yesterday the school remains committed to Fazio although the Panthers' record is their worst since a 1-10 season in 1972.

Fazio, who signed a two-year agreement last winter that extended his contract through 1988, was called a man of "compassion, warmth, integrity and loyalty" by Bozik.

Bozik's statement came three days before the Panthers end their first nonbowl season in a decade, and three weeks after the athletic director prompted much of the speculation by declining at a news conference to give Fazio a vote of confidence . . .

Doug Flutie of Boston College, college football's all-time total-yardage leader, is among the 1984 selections announced for the game's oldest all-star team, the Walter Camp Football Foundation all-America squad.

Others in the Walter Camp backfield are Ohio State's Keith Byars, Florida State's Greg Allen and Texas Christian's Ken Davis.

William Perry, Clemson's 340-pound middle guard, and Bill Fralic, Pittsburgh's 285-pound offensive lineman, are, along with Allen, returnees to the 1984 team.

Virginia Tech's Bruce Smith was named to the defensive line . . .

Colorado football player Ed Reinhardt, hospitalized since suffering a head injury in a Sept. 15 game at Oregon, has become increasingly aware of his surroundings and is able to toss a ball with his left arm, Craig Hospital officials in Denver said.

Reinhardt "is awake and aware of his environment much of the time," a hospital spokeswomen said. "He recognizes family and friends and responds appropriately. However, he is still unable to speak. He is beginning to eat and is able to use his left arm to throw a ball or shake hands" . .

John Ford, a freshman wide receiver for Virginia, has been named the Atlantic Coast Conference's football rookie of the year. The 6-foot-2, 187-pound Ford received 64 of the 99 votes cast by the Atlantic Coast Sports Writers Association . . .

Richard Morgan, a guard who averaged more than 24 points a game last season for Salem (Va.) High School, said he will sign to play basketball next year at Virginia.