Smith was sent home from the squad for England's last friendly international against Denmark in November just hours after being called up.
This came in the wake of his arrest for the bottle-throwing incident during a League Cup match in October.
In the end no charges were brought by police against Smith but he was banned for two games by the FA over the incident.
Eriksson pledged to give Smith another chance and he duly summoned the 23-year-old into a 24-man squad for next week's friendly in Faro.
Paul Robinson is also included along with Danny Mills, currently on loan at Middlesbrough.
Full Squad:
Goalkeepers: David James (Manchester City), Paul Robinson (Leeds United), Chris Kirkland (Liverpool)
Defenders: Danny Mills (Middlesbrough), Jamie Carragher (Liverpool), Ashley Cole (Arsenal), Wayne Bridge (Chelsea), Phil Neville (Manchester United), Sol Campbell (Arsenal), John Terry (Chelsea), Gareth Southgate (Middlesbrough)
Midfielders: David Beckham (Real Madrid), Frank Lampard (Chelsea), Owen Hargreaves (Bayern Munich), Nicky Butt (Manchester United), Paul Scholes (Manchester United), Joe Cole (Chelsea), Jermaine Jenas (Newcastle United), Kieron Dyer (Newcastle United)
Forwards: Michael Owen (Liverpool), Emile Heskey (Liverpool), Wayne Rooney (Everton), Alan Smith (Leeds United), Darius Vassell (Aston Villa)