ESPN's Adam Caplan and the Indianapolis Star's Stephen Holder both reported that the deal is not yet done, and ESPN's Josina Anderson quoted a source as saying, "nothing done at all." So, it sounds like the Colts' deal with Trent Cole is not done yet and is still being negotiated while other teams remain in pursuit.
It wouldn't be a surprise to see the Colts eventually land Cole, however, as the team really needs pass rush help and had Cole in for a visit on Monday. In ten seasons with the Eagles, he played in 155 games (starting 145) and notched 569 tackles, 85.5 sacks, 14 passes defensed, an interception (returned for a touchdown), and 19 forced fumbles, making two Pro Bowls.
It's still entirely possible that the Colts end up signing Trent Cole and that would make sense given their need for pass rush, but it sounds like the deal is definitely not done yet. The Colts remain the favorites, but it's not done yet. So, in other words, stay tuned.