The Memphis Grizzlies have signed the Hawks forward to a five-year, $58 million offer sheet, according to a report in the Atlanta Journal-Constitution. The Hawks now have seven days to match the Grizzlies' offer.
Atlanta has pledged to match any offers for Smith, the report said, but Memphis a team thought to be saving its abundant cap space for the loaded 2009 free agent class was not expected to be a suitor.
Smith's agent, Wallace Prather, confirmed talks but declined to give details.
"We're in the process of getting it all signed and everything, and that's all I can say right now," Prather said.
Smith posted career per-game highs in points (17.2), assists (3.4), field goal percentage (45.7%), and games played (81) while leading the Hawks into the postseason as the eight seed in the Eastern Conference. They pushed the eventual-champion Boston Celtics to the brink in the first round before losing the decisive seventh game.
Smith, 22, has played four NBA seasons all with the Hawks and has averaged 13.6 points, 7.4 rebounds and 2.7 assists for his career.
The Associated Press contributed to this report.