The Panthers re-signed Smith-Marsette to a one-year contract Tuesday, Ian Rapoport of NFL Network reports.
The Panthers chose to not tender Smith-Marsette on Friday, Joe Person of The Athletic reports.
Smith-Marsette finished the regular season with eight catches on 10 targets for 51 yards and eight rushes for 74 yards and a touchdown in 17 games. He also returned 37 punts for 322 yards and another score.
Smith-Marsette (illness) was a full practice participant Thursday.
Smith-Marsette (illness) didn't practice Wednesday, David Newton of ESPN.com reports.
Smith-Marsette caught all three of his targets for 12 yards and rushed once for zero yards in Sunday's 26-0 loss to the Jaguars.
Smith-Marsette caught his lone target for 18 yards and rushed twice for 33 yards and a touchdown in Sunday's 33-30 loss to the Packers.
Smith-Marsette caught both of his targets for one yard and rushed four times for 31 yards in Sunday's 9-7 win over the Falcons. He also muffed a punt but recovered it himself.
Smith-Marsette played 12 of the Panthers' 72 snaps on offense and went without a target in Sunday's 21-18 loss to the Buccaneers.
Smith-Marsette was traded to the Panthers from the Chiefs on Tuesday, Dov Kleiman of BroBible.com reports.