A week ago Harbaugh indicated to Michigan officials that he preferred to stay in the NFL, according to Rapoport. Michigan's search has been deliberate since the Wolverines fired Brady Hoke, and speculation has been that the school is waiting on Harbaugh's season with the 49ers to end. With the 49ers out of the playoff picture and reports of discord between Harbaugh and the club, the Wolverines could be the right move at the right time for Harbaugh, a former Michigan quarterback.
"Jim Harbaugh has not yet told Michigan a definitive no," Rapoport said on NFL Network's "Around the NFL."
Harbaugh, whose 49ers ranks a distant third in the NFC West at 7-7, has one year remaining on his contract with San Francisco.
At $8 million per season, the deal at Michigan would make Harbaugh the highest-paid coach in college football -- more than Alabama's Nick Saban, who earns in excess of $7 million per year. LSU coach Les Miles, a former Michigan player who has also been part of speculation about the job, has said he has had no contact with Michigan.
"The Oakland Raiders, who definitely have interest in him to become their head coach, they wait as well," Rapoport added.