The 29-year-old Smith was averaging 13.1 points, 7.2 rebounds and 4.7 assists per game this season.
"Our team has not performed the way we had expected throughout the first third of the season and adjustments need to be made in terms of our focus and direction," coach and team president Stan Van Gundy said in a statement.
"We are shifting priorities to aggressively develop our younger players while also expanding the roles of other players in the current rotation to improve performance and build for our future. As we expand certain roles, others will be reduced. In fairness to Josh, being a highly versatile 10-year veteran in this league, we feel it's best to give him his freedom to move forward. We have full respect for Josh as a player and a person."
If Smith clears waivers over the next 48 hours, he will have the right to go elsewhere as a free agent.
Regardless finish, all of these Aventadors get a thin, red stripe over the roof, engine cover, mirrors and air intakes. The whole look is completed with red brake calipers (yellow for Rosso Mars models) and gloss-black wheels. As should be obvious, these editions wear the Pirelli tires, specifically P Zeros.
The interior carries the motif inside. The seats are clad in black Alcantara and feature red stitching along with Lamborghini and Pirelli crests on them. The red stripe from the outside also covers the ceiling and seats, too. Naturally, a plaque identifies these models as part of this special-edition series.
The Aventador's usual mechanical bits hide underneath the two-tone look, meaning each is powered by a 6.5-liter V12 pumping out 691 horsepower with power going to all four wheels. The Pirelli Editions are available for order now and deliveries start in the early summer of 2015.