In July, he was accused of stomping on a man's head and charged with felony assault for his alleged involvement.
Smith will be sentenced to one year in jail and five years of probation in Los Angeles County Superior Court.
The corner was released by the Raiders on Monday.
Smith would have been due $8.25 million in 2018 and possibly $8.75 million in 2019, plus up to $250,000 in workout bonuses, according to Spotrac.
Christian Petersen Getty Images
Below is Oakland's official news release on Monday's transactions.
"He's pleased that [Smith] is admitting guilt, but the sentence is light,"Woods' attorney Jonathan Dennis said of the plea bargain". He then played for the Kansas City Chiefs from 2013-2015 before signing a four-year, $40 million deal with the Oakland Raiders. Getting released from the Raiders didn't really change that much about his career: He has been banned from playing since the suspension.
Over two seasons with the Raiders, Smith appeared in 29 games with 22 starts and totaled 77 tackles, four interceptions and 17 passes defensed. Entering the season finale, Smith was ranked eighth in the NFL in passer rating allowed (36.3) among cornerbacks with at least 110 coverage snaps in Weeks 12-16, per Pro Football Focus.
Oakland will again seek to bolster the secondary in free agency, looking for a starter at cornerback to pair with last year's first-round pick Gareon Conley. Last season, he lost his starting job to TJ Carrie before becoming one of the Raiders' better defenders in the last month of the season.