Niners general manager Scot McCloughan said prior to last season that Smith would not return if he did not head into the offseason as the 49ers' starting quarterback. But Smith never had the opportunity, as he was lost for the season with a small fracture in his throwing shoulder.

Smith is scheduled to earn $9.625 million in base salary in 2009, but the 49ers will not pay that amount. Therefore, Smith will have to agree to a reduced contract to remain with the team. The 49ers are likely to offer him a two-year contract.

Coach Mike Singletary said he has spoken regularly with Smith, who is set to get married in San Francisco on Feb. 21. The 49ers want Smith back on the team, and Smith said he wants to return to the 49ers.

Now, the only issue is hammering out the details of a new contract with Smith's agent, Tom Condon.

"I think the most important thing is that it gets done," Singletary said. "I think Alex wants to be here from everything I know."

Shaun Hill is the only other quarterback currently under contract with the 49ers for the 2009 season. He signed a three-year contract extension last year. Hill moved into the starting lineup at midseason, replacing injury-prone starter J.T. O'Sullivan.

Hill has compiled a 7-3 record the past two seasons. In games Hill has not started the past two seasons, the 49ers are 5-17. Singletary has been reluctant to name Hill the starter for the upcoming season.

Singletary said Hill would head into camp as the starter right now, but the 49ers are expected to add a veteran free agent or spend a draft choice in hopes of bolstering the team's quarterback position.

O'Sullivan and Jamie Martin, who was signed when Smith was injured at the start of last season, are not expected to be re-signed as free agents.