There is no bad blood between Jim Harbaugh and Alex Smith after the 49ers pursued signing Peyton Manning, and Smith negotiated with the Dolphins. "It's been good -- strong relationship, as always," Harbaugh said. "It's a very strong relationship." It has been reported that the 49ers and Smith have agreed to terms on a new contract. "I always have a good policy, based on experience, that it's never wise, never benefits anybody concerned to discuss negotiations and contracts in the media," Harbaugh said. "We're in a negotiating time. We're in a free-agent period. We're in a contract talk. All these questions are about negotiations." Smith helped lead San Francisco to the NFC Championship Game and the team planned to re-sign him, but they courted Manning when he hit the open market. As reports surfaced that the 49ers met with Manning last week, Smith paid a visit to the Dolphins, who are still potentially in need of a quarterback.