Mike Krzyzewski has decided to remain as Duke's basketball coach, declining overtures to become coach of the Boston Celtics, a newspaper reported last night.

The Charlotte Observer quoted sources in today's editions as saying Krzyzewski, the Blue Devils' coach for the past 10 years, has withdrawn his name from consideration.

Krzyzewski was unavailable for comment, but sources told the newspaper he is not ready to give up coaching on the college level or to break the relationships he has developed at Duke. The sources said he would make his decision public this morning in a prepared statement.

Krzyzewski was Boston's top choice to replace Jimmy Rodgers, who was fired after the Celtics' first-round NBA playoff loss to the New York Knicks. The team made Krzyzewski a financial proposal of $2.5 million over five years.

With Krzyzewski apparently out of the picture, Boston assistant Chris Ford is considered the leading candidate for the job.

Earlier yesterday, Krzyzewski said he would decide by the weekend.

"I'm not one to drag a decision out," Krzyzewski said after meeting with Duke Athletic Director Tom Butters. "It's not going to go through the weekend; no way." . . .

Mississippi State officials say they will investigate allegations of on-campus betting and whether NCAA rules were violated after a professor and a former student pleaded guilty to federal gambling charges.

Court documents indicate three Mississippi State football players were used in the fall of 1987 to help collect gambling debts. The players were not named.

Under NCAA rules, an athlete loses his athletic eligibility if he bets on college games. However, no rule explicitly bans gambling on professional sports.

Jeffrey Topping, 46, a psychology professor, entered his guilty plea Wednesday before U.S. District Judge Glen Davidson in Aberdeen, Miss. Former student Frank Michael House, 27, now of Atlanta, pleaded guilty Tuesday in U.S. District Court in Oxford, Miss. . . .

American University announced the hirings of two assistant men's basketball coaches and an assistant women's coach.

Gordon Austin and Darrell Brooks will serve as assistants to recently hired head coach Chris Knoche. Austin, a 1983 AU graduate, served last season as an assistant coach at the University of Pennsylvania. Brooks, a 1979 Bowie State graduate, was an assistant last season at William and Mary.

Kim Colyer was named assistant women's basketball coach, serving under head coach Jeff Thatcher. Colyer played for Thatcher at Northampton County Community College in Bethlehem, Pa.

Also, Joan von Thron was named the school's sports information director. She previously held the same position at the College of Charleston (S.C.).