The deal was announced on Thursday and is worth the veteran's minimum of $1.5 million. Smith played 55 games with the Rockets after the Detroit Pistons waived him in December. He was recruited to sign with Houston by childhood friend Dwight Howard.
He ended up scoring double digits in 35 of 48 games coming off the bench, including four 20-point games. When Houston was down 3-1 in the Western Conference Semifinals, coach Kevin McHale inserted Smith into the lineup and they rallied to advance. Smith and Corey Brewer combined to score 29 fourth-quarter points in Game 6 to help them rally from a 19-point deficit.
Smith enjoyed his time with Houston and the 29 year-old said he wanted to come back and play for the organization next season.
He has spent 11 years in the NBA with the Atlanta Hawks, Pistons, and Rockets, and averaged 15.1 points, 7.7 rebounds, 3.2 assists, 2.0 blocks, and 1.3 steals in 33.6 minutes per game. Smith is the 25th player in NBA history with over 10,000 points, 5,000 rebounds, 2,000 assists, and 1,000 blocked shots.