Alex Smith will return to 49ers, putting Manning saga behind him

Alex Smith and the San Francisco 49ers agreed to terms on a new contract Tuesday, a league source told NFL Network's Michael Lombardi. Final details were still being worked out and the deal could be complete as soon as Wednesday.

Terms of the deal were not available Tuesday night, but the team had previously offered Smith a three-year, $24 million contract.

Smith, 27, met with the Miami Dolphins on Sunday and reportedly was upset over the 49ers' courting of Peyton Manning, but ultimately decided to stay with the franchise that drafted him first overall in 2005.

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"Oh, I'm excited," tight end Vernon Davis said in a text message. "I'm glad. Alex deserves all good things that come his way."

San Francisco coach Jim Harbaugh told reporters on Tuesday that he and Smith had "a very strong relationship," and that nothing had changed in Smith being "our guy."

Long booed by fans at Candlestick Park, Smith threw for 3,150 yards and 17 touchdowns with only five interceptions last year as San Francisco went 13-3 and advanced to the NFC Championship Game.

"I can see these guys dominating for the next decade," former 49ers running back Roger Craig said Tuesday. "The kind of intangibles Harbaugh brings to the table, he's very competitive and a smart guy and players believe in him, and just look how Alex stepped up his game."

The Associated Press contributed to this report.

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