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“Smith, who met briefly with the Miami Dolphins, wound up signing a three-year, $33 million contract to remain in San Francisco only a few days after Manning agreed to a $96 million, five-year contract with the Broncos. "Were we out there seeing, evaluating if we could have them both? Heck yeah," Harbaugh said. "You evaluate that, you eliminate the possibility. We would not have given any player out there in free agency a sixth of our salary cap and let six or seven of our own guys go. Hopefully, that sets the record straight. You don't have to keep reporting the silliness or phoniness. "There was interest (in Manning) and we evaluated it, pursued it, further evaluated it and there was conversations. But there was nothing said to Alex that was not said to Peyton Manning or in house here, on the record or off the record. Both those young men knew exactly what our intentions were." Smith was caught off-guard when asked about the topic Wednesday, something he first talked about when he signed his new contract in late March. "Yeah a little bit, a little surprised," said Smith, grinning. Smith, the first overall pick in the 2005 NFL draft, had completed practice and was working out with a few teammates in the 49ers' on-field weight room when Harbaugh made his comments. The 49ers coach later walked over and knelt beside Smith, who smiled as the two men spoke. "Coach Harbaugh, from the day I've been here, has been completely honest," Smith said. "I certainly felt like this was my job to compete for, no question. I feel like what we accomplished last year that I deserved that." Smith said the team had been upfront with him regarding its intentions with Manning and that the two sides remained in contact throughout the entire process. "I mean, a month prior to any of the Peyton Manning stuff (they) had been negotiating with me to come back and (sign) a new contract," Smith said. "When that arose, they were honest. I knew they were going to see him, check him out, do their due diligence."
Alex Smith is our quarterback, was our quarterback and (we) had every intention of always bringing him back” -- 49ers coach Jim Harbaugh
on Peyton Manning interest