The wide receiver, who was the 37th overall pick of the 2015 draft, was waived with an injury designation. Smith tore his ACL for the second time in just under a year-and-a-half while participating in off-season workouts last month.
"It's bad luck and bad timing because the kid worked so hard to get back," coach Todd Bowles told the team's website. "He has to persevere and adversity will help him get stronger.
"But unfortunately in this game, over my course of time playing and coaching, you see these types of things. Some of the best athletes get hurt and don't get a chance to get on the field and it's just bad timing, bad luck."
Smith caught nine passes for 115 yards and one touchdown in 10 games before an ACL tear in December ended his rookie season. The former Ohio State player reeled in just one pass for 20 yards while playing in four games in 2016.