Smith, 23, only left Leeds six weeks ago in a £7m deal but Everton tried to buy him before Sir Alex Ferguson secured his signature.
He is yet to make his debut for the Old Trafford club and could now be used in their bid to buy Rooney in a £30m deal.
The Sunday Mirror report that Ferguson may sacrifice Smith for Rooney as the Old Trafford board are not willing to sanction a deal anywhere near the £50m asking price because they know Rooney wants to play for the club.
And they know that with debts of £40m, the pressure will increase on Everton to sell.