The Aussie half-back has left the Wildcats with immediate effect but will not play for his new club until the start of next season.
The former Wigan star joined the Wildcats in 2012 from Cronulla Sharks and helped them make the play-offs last season.
The 28-year-old, who revealed in 2008 that he was suffering from bipolar disorder, will be unveiled by Salford on Thursday.
He is expected to be one of several new signings as millionaire owner Marwan Koukash looks to turn Salford into a Super League force.
Starsport understands Smith has agreed a two-year deal worth around £100,000-a-season.
Salford snap up Tim Smith from Wakefield Wildcats
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