Asked about Smith's guarantee that the Knicks would win the championship, Terry told Dime Magazine in an interview, "Maybe the Rucker Park Championship. I don't know, not the NBA championship. I don't see how they could guarantee that, at all. I'm not buying it, so ... I mean, it's a bitter rivalry, you know it's going to be intense, and however they feel over there in that locker room they are guaranteed and entitled to feel that way but we don't want to see that happen on our watch."
Smith told children during a recent event at Chelsea Piers that he was "100 percent sure" the Knicks would end their 40-year title drought this season, according to the New York Post.
Smith also took a dig at the Nets, saying, "they're still not good."
Terry isn't the only Net to take umbrage with Smith's bravado.
Upon seeing Smith's comments, Brooklyn forward Reggie Evans responded via Twitter with "lol."
The city rivals have engaged in a war of words ever since Nets forward Paul Pierce told ESPN NewYork 98.7 in August, "I think it's time for the Nets to start running this city."
Smith then told ESPNNewYork.com that he thought Pierce was simply "bitter" because Pierce had just been traded by the Boston Celtics after spending the first 15 seasons of his career there.
Pierce, Terry and Kevin Garnett all joined Brooklyn this offseason in a trade with Boston.
Like Smith, Terry has been equally as confident in Brooklyn's chances this season.
"We are going to kick butt and take names, and hopefully that's gonna end up in a championship," Terry told ESPN NewYork 98.7 FM on the day of first-year head coach Jason Kidd's news conference at Barclays Center.
"I'm saying Deron Williams for MVP, with the pieces we have here."
Terry later said: "There's something in the air here that says the Brooklyn Nets will be the NBA champions next year."
Terry seemed to temper his expectations for the Nets in his interview with Dime Magazine.
"Only thing I can predict is that we're going to go out every night and do all that we can, as a team, as a unit, as a [borough] of Brooklyn to go out and fight for that championship because that's all of our goals," Terry told the magazine. "And we're going to do whatever we can within our power to go after it."
Terry is no stranger to self-imposed lofty expectations. He was so confident that the Dallas Mavericks were going to win the championship in 2010-11 that he got a tattoo of the Larry O'Brien Trophy on his right biceps before the season even started. And the Mavericks came through, capturing the title by defeating the Miami Heat in the Finals.
The Nets and Knicks will play the first of four regular-season meetings on Dec. 5 in Brooklyn, but only time will tell if it's Smith or Terry who has a better crystal ball.
Mike Mazzeo is a regular contributor to ESPNNewYork.com.