Schefter, who went to Michigan, made his comments on ESPN's "Mike and Mike" radio show Monday morning. The comments were reported by MLive.com
Speculation is heavy Michigan will fire coach Brady Hoke. Harbaugh, the San Francisco 49ers' head coach and a former Michigan quarterback, would be the fans' top choice to replace Hoke.
"I've had a lot of people ask me, 'Could Jim Harbaugh wind up at Michigan?' I'm not going to tell you he can't, but based on everything I've been told and heard, I do not see that happening," Schefter said during the radio interview, according to MLive.com.
On Sunday, Schefter reported if the 49ers make the playoffs this season, Harbaugh could be rewarded with a contract extension in San Francisco. Schefter attributed his information to sources.
One NFL source told Schefter the Raiders would be the favorite among NFL teams to land Harbaugh.
"To me, the Oakland Raiders are the obvious landing spot," Schefter said Monday during the radion interview. "It would mean he could stay in the Bay Area; I'm sure he and his family are happy about that idea."