The 28-year-old joined from Reading in January 2025 and has scored 17 goals in 66 competitive appearances.
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Smith helped Wrexham secure promotion during his first season before contributing to last season’s seventh-place finish.
He has also impressed during pre-season, scoring winning goals against Manchester United and Leeds United.
“I’m absolutely delighted. It’s a special Club to be at, I’m extremely grateful and I’ve enjoyed every moment that I’ve been here so far,” he said.
“I’m becoming a better and more experienced player. I know my role and what I can bring - I can’t wait for the next three years."
Since arriving, Smith has played a key role in Wrexham’s remarkable rise, including scoring seven goals during their promotion campaign.