The experienced right back has put pen to paper on a deal for the 26/27 season, with his previous contract set to expire at the end of this campaign.
Club captain Smith has been a stalwart at AFC Bournemouth since he joined from Tottenham Hotspur in January 2014, after having a loan spell with the club in the 2010/11 season.
Read more:
In total, the 34-year-old has made 418 appearances for the club across those two spells in all competitions, scoring six goals and providing 35 assists.
He is one appearance away from making 250 appearances in the Premier League.
This season, Smith has made 15 appearances in the league and one in the FA Cup, starting ten in the top flight for Andoni Iraola's side.
He was an important part of the record-breaking team from last season, making 25 total appearances in the league, as well as playing a role in the side which achieved the club's first promotion to the Premier League from the Championship in 2014/15.
Smith told afcb.co.uk: “I’m delighted to extend my contract with AFC Bournemouth and continue my journey at this special club.
"I’m incredibly proud to be part of this group and truly grateful for the trust the club has placed in me. I’m excited to keep contributing, to push ourselves every week, and to work together towards achieving something special.”
President of football operations, Tiago Pinto, added: “Adam is someone who continues to perform at the top level and brings consistency to the team every week.
“He represents the DNA of the club, having been here for more than ten years, and we know the leadership qualities he possesses. He is an example to the younger players of the success that can be achieved with hard work and we’re looking forward to having him with us for another year.”
Smith's new deal comes on the same day as the confirmation that fellow right back Alex Jimenez had joined the club on a permanent move, after the obligation to buy in his loan deal from AC Milan had been triggered.