Birmingham wanted to complete the deal but were unable to agree personal terms with the player.
He agreed personal terms for a four-year contract worth €500,000 a season.
He left the club at the end of the season, after failing to agree terms on a new contract.
The deal later collapsed when the two sides were unable to agree terms.
The decision, he said, took only minutes for the club and himself to agree terms.
However, later that night the deals fell through as neither player could agree personal terms.
However, the deal fell through when neither club could agree terms.
Smith has agreed terms to spend a second season with the club.
Failure to agree terms will not just be a missed opportunity.
We arranged to meet again three days later and agree terms.