Smith's contract expires after this season. Coach Jack Del Rio is the only coach or member of the front office with a contract that runs beyond 2011. His deal runs through next season and will pay him $5 million this season and next.
"A contract was extended to me and I declined it," Smith told the newspaper. "I did not think I deserved an extension based on the conditions. Our scouts and other employees weren't being extended. I didn't think I deserved it. However, I do appreciate that (owner) Wayne (Weaver) offered me one."
When contacted by the newspaper, Weaver confirmed Smith's account. "What Gene said is true, and I respect his position," Weaver said.
Smith has been with the Jaguars in various roles since the team's first season in 1995. He became the team's GM after the 2008 season. Despite turning down the offseason offer, Smith said he would like to remain with the organization.
"I'd like to be here longterm, I'd like to finish what we started," Smith told the newspaper. "I feel like I work for one of the best organizations. I've invested a good part of my life here, but I also realize transition is a way of life in the NFL."
The Jaguars are 2-6, good for third place in the AFC South.
Information from ESPN.com AFC South blogger Paul Kuharsky was used in this report.