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AP Source: Alex Smith, 49ers have deal in place
Person with knowledge of negotiations says Alex Smith, 49ers reach 3-year deal
By The Associated Press

SANTA CLARA, Calif. (AP) ' A person with knowledge of the negotiations says quarterback Alex Smith and the San Francisco 49ers have agreed to terms on a three-year contract that will pay him $8 million per season with $16.5 million guaranteed.

The person spoke on condition of anonymity Wednesday morning because no announcement had been made. Smith is expected to sign within the day. Smith's new deal, all but done late Tuesday, can pay him up to $33 million.

Earlier Tuesday, Peyton Manning was formally introduced in Denver after the 49ers pursued the four-time NFL MVP. Coach Jim Harbaugh worked out Manning at Duke last Tuesday.

The 27-year-old Smith met with Miami on Sunday but ultimately decided to stay put with the team that drafted him first overall in 2005.

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