James found time on the field as a kick returner last season, but remains stuck at the back end of the running back rotation in San Francisco.
Baalke, however, has no current designs on giving up on the former Oregon standout.
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*» *Baalke said the organization was "disappointed" with Smith's off-field concerns but still wants the linebacker in San Francisco long-term.
"We're a family. You don't just open a door and toss people out of it," Baalke said of Smith's situation, per The Bee.
The GM said that there was no timetable to come to an agreement, but opined that the intricacy of such a deal -- and not the police investigation in Florida -- was the main issue.
"Nothing's changed," Baalke said. "But at the same token, negotiations of these kinds, they're long. They can be drawn out. They can very tedious. Like always, it takes a lot of work to get these types of deals done."