NFL Media Insider Ian Rapoport reported on Sunday's NFL GameDay First that Michigan officials believe their former starting quarterback will become the new head coach.
University officials are planning to meet with Harbaugh face-to-face sometime after Sunday's Niners season finale and are hoping to introduce him on Tuesday.
Harbaugh finished 44-19-1 as San Francisco's head coach. After taking the team to three consecutive NFC Championship games and a Super Bowl, the discord with the front office undercut the team in 2014.
The 49ers entered Week 17 in the midst of their first four-game losing streak under Harbaugh and finished with as many losses this season (eight) as in last two seasons combined under Harbaugh (12-4, 11-4-1).
The smoke behind the Harbaugh-to-Michigan news has been growing the past several weeks as school officials have pushed hard for Harbaugh in hopes he can change the fortunes of a now downtrodden program.
As the saying goes, where there is smoke there is fire. It seems like it's getting closer to the pen-to-paper stage to send Harbaugh back to college.
However, until pen does meet paper, there is a chance Harbaugh remains in the NFL.
Harbaugh hasn't discussed his future with the media, consistently stating he plans to focus on the upcoming game. He was thankful and spoke with a tone of bittersweet nostalgia following the win Sunday.
Rapoport reported that the coach has also been mum on his future with some close friends.
"Another key thing is Harbaugh's been talking to several close friends throughout this process over the last week or so and they have asked him directly if he's gonna be Michigan's coach. He has not answered them," Rapoport said.
Over the next few days Harbaugh will answer everyone, loudly.