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Jim Harbaugh and Michigan are close to signing a five-year contract extension with a base salary of $4 million annually, according to a source. The source spoke anonymously since they were not authorized to publicly comment on the situation.

The Athletic’s Nick Baumgardner and The Detroit News’s Angelique Chengelis first reported these details on Thursday night. Reporting from other outlets has indicated an official announcement could be made on Monday, Jan. 11.

The contract extension is expected to be heavily incentivized.

The salary would represent a heavy pay cut for Harbaugh, who had been making $8 million on his first deal, which runs through the end of next season. His salary dropped by 10 percent this year due to a COVID-19 induced pay cut.

Michigan went 2-4 last season under Harbaugh, already leading to staff changes reportedly including a new defensive coordinator and quarterbacks coach.

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