The 21-year-old arrived at the club this season, having spent 2013 with the South Sydney Rabbitohs, where he was a regular in their U-20s team.
“It’s great news for the club that along with Reece Lyne we have been able to keep another exciting young British player in Daniel,” he said.
“Daniel has shown with his performances this season that he has a great future in the game and we are obviously extremely happy that we have beaten off interest from several clubs to keep him at Wakefield.”
Smith himself was also pleased that his future had been resolved.
“I’ve been talking to the club for a number of weeks now and I’m happy I’ve got something sorted so I can kick-on with my career and keep improving,” he said.
“I didn’t think I was going to play as many games as I have done this year which I’m grateful for. Now Webbo (James Webster) is in he sees me as a first team player so I’m really looking forward to playing under him for the next three years.
“This club gave me the opportunity in the first place so I thought I’d repay them back by signing a three-year deal so hopefully we can kick-on now. We’ve survived relegation so just keep kicking on.
“We’re always striving to be a better team and I think that’s shown in the past few weeks where we’ve got some wins against the likes of Leeds and Wigan, so we know we can do it.
“If we keep doing as we are then I think we’ll be pushing for a top eight spot next year.”