This kind of error message typically occurs when using a syntax element that is only available in a more recent SAS version or maintenance release. Since the OUTMODEL= option was introduced in SAS/STAT 14.1 (see https://support.sas.com/documentation/onlinedoc/stat/141/whatsnew.pdf, p. 8), I suspect that you are using SAS/STAT 13.2 or older. In this case only a software update could make the option available.
and see the log to find out your SAS/STAT version.
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