 Born in St. Louis Park, Minnesota, Niedenfuer first moved with his family to Pennsylvania when he was three, and later moved to Washington when he was in the third grade.Raised in Redmond, Washington, he graduated from Redmond High School in 1977 and was selected in the 36th round of the MLB draft by the Dodgers.Niedenfuer did not sign and played college baseball; he was a standout pitcher for the Washington State Cougars in Pullman under head coach Bobo Brayton.