Dru Smith will stay with the Miami Heat on a three-year deal worth $7.9 million, sources tell ESPN’s Shams Charania and HoopsHype’s Michael Scotto.
The first year is fully guaranteed, while the final two seasons carry conditional guarantees, according to The Miami Herald’s Barry Jackson.
Miami cleared a roster spot for Smith by trading Haywood Highsmith to Brooklyn, freeing up $5.6 million in salary to remain under the cap.
Smith, 27, impressed last season before suffering an Achilles tear in December. Despite being sidelined, he stayed on a two-way contract for the remainder of the year.
Heat officials are confident Smith will be fully recovered by the season opener on October 22, or shortly after.
Last season, he averaged 6.2 points, 2.6 rebounds, 1.6 assists, and 1.5 steals in 19.1 minutes over 14 games, shooting .508/.533/.750 and showing growth as a three-point shooter.
Smith began his career with Miami in 2022 on a two-way deal, spent part of that season in Brooklyn, and returned to Miami in 2023 before converting to a standard contract.
An earlier qualifying offer prevented him from signing another two-way contract this summer.
With Smith re-signed, the Heat are unlikely to pursue free agents Trey Lyles or Kai Jones. Miami currently has limited frontcourt depth, which could be addressed via trade rather than free agency.
The roster now stands at 14 standard-contract players, and adding a 15th would push the team into luxury tax territory.
Coach Erik Spoelstra has multiple options in the backcourt, as Smith, newly re-signed Davion Mitchell, and first-round pick Kasparas Jakucionis can all play point guard, potentially coming off the bench behind starters Tyler Herro and Norman Powell.
Heat Signing Dru Smith To Three-Year Contract https://t.co/5gysiUicrB pic.twitter.com/0I27N3XEeX
— Hoops Rumors (@HoopsRumors) August 16, 2025
