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Jim Harbaugh agreed to a five-year, $25 million contract to become the San Francisco 49ers' head coach Friday, according to team and league sources.

The 49ers announced a news conference scheduled for 6:30 p.m. ET, but did not indicate the reason.

Earlier Friday, a source told ESPN senior NFL analyst Chris Mortensen that Stanford was the favorite to retain Harbaugh's services.

On Thursday, Harbaugh met with top Stanford officials -- including university president John Hennessey -- so that the school could make its best offer to try to retain him. The university reportedly increased an offer it had made to Harbaugh in December.

The 49ers met with Harbaugh Wednesday, and a source said that on Thursday night, after news broke that Harbaugh would not go to the Miami Dolphins, San Francisco was willing to increase its offer.