The NFL Network's Michael Lombardi is reporting that the San Francisco 49ers have agreed to a new contract with free agent quarterback Alex Smith.

RT @nfl: The @49ers and QB Alex Smith agree to terms on a new contract, @nflnetwork's @michaelombardi reports. #freeagency

— Michael Lombardi (@michaelombardi) March 20, 2012

This tweet follows close on the heels of another report over at ESPN, where according to Chris Mortensen, sources had indicated that the 49ers and Alex Smith were close to finalizing a deal that would bring Smith back to the Bay Area for three more years and average out at about $8 million per season. That report indicated the deal was close but not done, with both sides working out the guaranteed money and language on the contract.

Smith passed for 3,144 yards, 17 touchdowns and only 5 interceptions in 2011 and led the Niners to the NFC West title and a berth in the NFC Championship game. They'd been delayed in contract talks while the Peyton Manning sweepstakes played out, but once the 49ers were eliminated from that race, Smith became the team's top priority.

We'll have updates here as the news comes out. Head over to Niners Nation for more...