The 31 year old defender's contract was up next month, but had an agreement in that contract promising him at least another year if he played a set amount of games, which he did.
Smith was brought to Easter Road on trial by former boss Alex McLeish, after he was realeased by Aberdeen in a disastrous second spell with the club. The former Falkirk and Rennes man showed what was he was capable of in this time and was snapped up on a two year deal. Gary has found the net for Hibs on one occasion, against Stranraer in the Scottish Cup in January of this year.
Gary told the Edinburgh Evening News "I was happy enough with the clause which stated I'd have to play so many games before having my contract extended, the club obviously didn't want to give me three years if I was only going to be sitting around taking a wage."
"It's been very pleasing to have played so many matches over the past couple of seasons given what happened during my time at Pittodrie. I've thourghly enjoyed my time at the club and I'm looking forward to hopefully helping the club have a better season next time than we've had this time round."
Gary has been one of Hibs' most consistent preformers since his arrival, and after all the flak he took during his time at Aberdeen, few would grudge him the new deal.