Smith returning to 49ers for $8 million per season

Quarterback Alex Smith signed a three-year deal Wednesday with the San Francisco 49ers that will pay him $8 million per season with $16.5 million guaranteed.

A person with knowledge of the contract details said Smith’s deal can pay him up to $33 million. The person spoke on condition of anonymity because the contract wasn’t made public.

On Tuesday, Peyton Manning was formally introduced in Denver after the 49ers pursued the four-time NFL MVP. Coach Jim Harbaugh worked out Manning at Duke last week.

The 27-year-old Smith met with Miami on Sunday but ultimately decided to stay put with the storied franchise that drafted him first overall in 2005.

“Thanks for choosing the 49ers Alex. Sorry it was a tough week,” 49ers CEO Jed York said on Twitter.

Smith had a breakthrough season last year, throwing for 3,150 yards and 17 touchdowns to help San Francisco reach the NFC title game.

Around the league

The Buffalo Bills continued to target improving their pass rush in free agency by signing defensive end Mark Anderson. Listed at 6-foot-4 and 255 pounds, Anderson has 35 1/2 sacks in six seasons, including 10 last year with the New England Patriots … A person familiar with the negotiations said former Patriots running back BenJarvus Green-Ellis agreed to a deal with the Cincinnati Bengals. Green-Ellis spent four seasons with New England, carrying 181 times for 667 yards in 2011 with 11 touchdowns … The New Orleans Saints and free-agent defensive tackle Broderick Bunkley have agreed on a five-year contract. Bunkley spent last season with the Denver Broncos … The Indianapolis Colts signed free-agent center Samson Satele, perhaps paving the way for Jeff Saturday’s exit. Satele played two seasons in Miami and spent the last three in Oakland.