According to the report, the teams are looking for a third team to help pull off the deal.
Smith, 28, spent last season with the Pistons, averaging 16.4 points, 6.8 rebounds and 3.3 assists in 77 games. He spent his first nine seasons with the Atlanta Hawks, who drafted him in the first round of the 2004 NBA Draft.
Smith still has three years left on his contract that will pay him $13.5 million each season until 2017.
More from ESPN.com:
Detroit and Sacramento have engaged in trade discussions that would potentially land Smith in the same frontcourt with DeMarcus Cousins and Rudy Gay. Initial talks called for Sacramento to send Jason Thompson and either Derrick Williams or Jason Terry to the Pistons for Smith, but those discussions reached an impasse and were pushed into July along with the rest of both teams' free-agent business, sources said.
- Scooby Axson