Smith, currently on holiday in the States, will take his time before deciding his next career move. Former club Leeds United are keen.
"Alan has obviously been made aware that he is available for transfer by the club," his agent Alex Black told The Journal.
"But Alan will only go somewhere if it is something that he wants to do. If there is nothing that appeals to him, he will be coming back to pre-season at Newcastle United.
"He will remain professional as ever and will work hard for Newcastle United, as he always has."