Smith, who turns 31 in July, signed an eye-popping four-year, $40 million contract -- $20 million guaranteed -- prior to the 2016 season, but never lived up to his billing. The move will save the Raiders $8.5 million in 2018.
Smith recorded two interceptions in each of the last two seasons after totaling 10 in a combined seven years with the Kansas City Chiefs and Miami Dolphins. His 32 tackles last year matched the fewest since his 2009 rookie season with Miami.
Smith has had trouble off the field. In July, he was accused of stomping on a man's head and charged with felony assault for his alleged involvement.