Smith, 26, averaged 3.7 points and 2.6 assists in 70 games last season for the Phoenix Suns, who waived him earlier this week after selecting Tyler Ennis in the first round of this year's draft and coming to terms with Sacramento on a sign and trade deal for free agent Isaiah Thomas.
Since going undrafted out of Wake Forest in 2010, Smith has had stints with Houston, Memphis, Golden State, Orlando and Milwaukee.
Houston won 54 games and earned the No. 4 seed in the Western Conference before losing to Portland in the first round of the playoffs.
- Chris Johnson