Smith, 25, is a former fifth-round pick of the Broncos back in 2013 out of Western Kentucky.
He still had another two years remaining on his four-year, $2.352 million rookie contract. He would have made base salaries of $585,000 in 2015 and $675,000 in 2016.
According to OverTheCap.com, releasing will free up $537,000 in available cap space while creating $96,000 in dead money.
In 2014, Smith appeared in 15 games for the Broncos, but recorded just 11 tackles and two pass defenses. Pro Football Focus has him rated as the No. 51 defensive end in a 4-3 system out of 59 qualifying players.