The 37-year old may not be fit for the new season and with Smith limited to a squad of 20 players (including goalkeepers) he cannot afford to include injured players.
Smith said: "I'd like to offer a fit Brian a 12-month deal, but I can only wait so long before making a decision.
"In a 20-man squad I don't want to start the season with injured players."
The Dragons boss is also known to be concerned about an injury to Jim Whitley which has kept him on the sidelines since the start of the year, Whitley, however, is guaranteed to be in the 20-man squad, having a year still to run on his current deal.