Harbaugh is entering the fourth year of a five-year contract. He is being paid a base of $5 million per year. The 49ers have reached the NFC title game in all three of Harbaugh's seasons as coach and have been to one Super Bowl.
"We actually just had this conversation yesterday," York said on "Yahoo! SportsTalk Live." "We just said, 'You know what, let's not do anything during the season. Let's sit down a week or so after the season is over and let everybody know we're not focused on anything that's off the field right now.' ... Jim and I will sit down a week or so after the season is over, and we'll figure out where we go."
The two sides have discussed a potential extension for the past year. The Cleveland Browns also inquired about trading for Harbaugh earlier this offseason. The 49ers and Harbaugh indicated that talks didn't go far on their ends.
There have been reports that Harbaugh wants to be paid like a Super Bowl-winning coach and the 49ers want to see him win one first before paying him at that level. Harbaugh has denied those are his demands on multiple occasions.
York said on the show Thursday night that he hopes Harbaugh is in a position of strength when the two sides next talk about a deal.
"I've said publicly and very loudly in the past, I hope he has the utmost leverage when we sit down and talk about his contract at the end of the season," York said. "It's a good thing. It's an unbelievable problem to have."