Jim Harbaugh is waving the white flag in his fight against the Big Ten -- the Michigan head football coach has agreed to accept his three-game suspension as a result of the program's sign-stealing scandal.
U of M released a statement on the matter Thursday afternoon ... saying all sides resolved their pending litigation, with the conference closing its investigation.
"Coach Harbaugh, with the University's support, decided to accept this sanction to return the focus to our student-athletes and their performance on the field," the school said.
"The Conference has confirmed that it is not aware of any information suggesting Coach Harbaugh's involvement in the allegations."
Harbaugh's punishment means he will now miss Michigan's game against Maryland -- plus its massive rivalry with Ohio State ... which has a lot riding on it, as both schools are ranked in the top four.
Thursday's decision, however, doesn't mean Coach is out of the woods just yet -- the NCAA is still looking into the whole saga involving staffer Connor Stalions, who is accused of buying tickets to games to decipher the sideline signals of Michigan's future opponents.
The school stated it will continue to cooperate with that investigation.
Harbaugh will be able to coach during the week ... but he will be persona non grata on gameday for the next two matchups.
The Wolverines did just fine without him on Saturday ... beating No. 10-ranked Penn State, 24-15.