Smith, who had been invited back for a trial with the club after a freak injury cut short a previous stint at The Den, had decided to try his luck with Liga de Honra outfit Portimonense last week but after finishing just one place above the relegation zone, the Portuguese club feel they cannot justify spending a large proportion of their budget for next season on just one player.
And with Tony Craig expected to sign for neighbours Crystal Palace today, a window of opportunity has opened up for Smith.
"We're delighted the lad has been given this opportunity", said a spokesman from his agents, HPS Management. "The kid grew up on the cobbles not far from Cold Blow Lane so for him to pull on a Millwall shirt would be a dream come true.
"However, there are other clubs interested and although the Portugal move did not work out, we are confident he will have a club before August."
As mentioned earlier, one of those interested are Colchester United, with the Essex Evening Gazette reporting that manager Geraint Williams views the player as the perfect replacement for Greg Halford, who departed Layer Road last season.