Smith, 29, will be a veteran presence for the Magic's front line. Orlando's projected starting forwards and center are 25 and younger.
Smith averaged eight points and four rebounds in 22 minutes per game last season for the Knicks. He proved durable, starting 31 games and suiting up for all 82 during the Knicks' 17-win season. New York had hoped to get a little more out of Smith when it signed him for $3.2 million last offseason.
The 7-footer has been on four teams in eight seasons. He was selected in the first round of the 2007 NBA draft by the Miami Heat.