Smith, 23, is now under contract through the 2015 season.
The option for the 2011 first-round draft pick is worth $10.039 million.
A former ninth overall pick from USC, Smith has started all but one game in his NFL career.
Smith, 23, signed a four-year, $12.49 million contract in 2011, including a $7.58 million signing bonus.
The Cowboys would ideally like to sign Smith to a long-term contract extension.
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Aaron Wilson covers the Ravens for The Baltimore Sun
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This story originally appeared on Nationalfootballpost.com
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