Pederson told the Kansas City Star: "Ultimately, every team has to have a quarterback. I think we have the best in the league.
"There are a lot of great ones but over time, Alex has proven he can get it done. He's a sharp guy, he brings a wealth of knowledge, he's experienced, he's a proven winner the last couple of years, and he needs a team to embrace him."
Smith spent eight years with the 49ers, having been the number one pick in the 2005 draft.