Shams Charania of Yahoo Sports reported Smith accepted the invitation Tuesday.
Smith is enjoying a strong debut season with the Mavs to the tune of 14.8 points, 4.6 assists and 3.9 rebounds per game across 39 appearances.
The 20-year-old NC State product has generated more attention for his explosiveness around the rim than his all-around play, though.
Here's an example from Monday night's victory over the Washington Wizards:
In September, Smith told Isaac Harris of FanSided he wasn't sure whether he'd accept a chance to take part in the dunk contest.
"It depends on what is going on around then, man," he said. "... I'm trying to make the playoffs, but we will see about that."
The Mavericks have already started to fade out of postseason contention, however. They sit 14th in the Western Conference with a 16-31 record, eight games out of the final playoff spot.
The Slam Dunk Contest takes place Feb. 16 at 8 p.m. on TNT.