(NEW YORK) — The San Francisco 49ers agreed to a new three-year deal with quarterback Alex Smith, according to sources of ESPN.com senior NFL writer John Clayton.
The deal will pay Smith close to $8 million per season according to sources of senior NFL analyst Chris Mortensen.
For a while it looked like Smith might leave San Francisco. Just last week the 49ers were working out Peyton Manning in North Carolina while Smith visited the Miami Dolphins.
Despite that, things worked out for the two and Smith will now head into his eighth season with the team.
Last year was probably the best of Smith’s career. He set career highs in passing yards, completion percentage and quarterback rating. He also led San Francisco to the NFC Championship game for the first time since 1997.
Copyright 2012 ABC News Radio
Eliott C. McLaughlin, CNN Newswire
Jill Martin, CNN