The 25-year-old has been replaced by Shane van Gisbergen, who will drive the No.88 Chevrolet next season.
Despite being dropped from the team Smith has only finished outside of the top 20 twice in the past seven races, and finished P2 at the Nashville Superspeedway in June.
Where will Zane Smith race next in NASCAR?
Smith’s options for next year remain limited at Cup level, and may be banking on a team introducing a third car.
The most likely option could be Front Row Motorsports who are expanding to three cars, which will field Todd Gilliland and Noah Gragson, leaving one spot remaining.
Despite his difficulties Smith has enjoyed the support of fellow NASCAR star Denny Hamlin, who discussed what was next for the axed driver on his podcast Actions Detrimental.
“I think he’s a good enough talent that he is going to get a good opportunity. A winning opportunity somewhere,” Hamlin said.
“This is a new car, new team which at the time, was a mid-tier team."
“What are your expectations, right? But I think he’s taken it to the next level from what I’ve seen.
“That when given a little bit of experience now, half of season. He’s already turned the corner to being twice as good as he was at the beginning of the season.
“So, what is he gonna do a year from now? Two years from now? I think the ceiling is pretty high on him. I think he’ll get picked up by somebody who sees it.”