Rumours began to circulate regarding the veteran's future at the franchise after they slipped to their fourth defeat of the campaign despite high pre-season hopes of a Super Bowl appearance.
However, Smith believes that the 37-year-old is having one of the best seasons of his illustrious career and would not entertain the idea of trading him.
"That's preposterous that Tony would be traded. He's an integral part of our offense and has been since he's been here. And he's having another Hall of Fame season," Smith told ESPN.
"In my mind, the last two weeks have been maybe his best two games since he's been here. So he's an integral part, and will continue to be, to the success we're going to have."
Gonzalez, who is a 13-time Pro Bowler, joined the Falcons in 2009 after a 12-year spell with the Kansas City Chiefs.