The Latics have wasted no time in filling the void left by Dean Furman, who has completed a move to Doncaster.
Fellow Canaries trainee, Tom Adeyemi, also spent time on loan at Boundary Park last season and Smith will hoping to make a similar impression.
Smith, 22, is no stranger to spending time away from Carrow Road, having enjoyed temporary moves to both Barnsley and Yeovil in the last 12 months.
The player was a key part of the Norwich side that stormed to the League One title back in 2009/10 but has since found first-team opportunities increasingly hard to come by.
The combative midfielder could make his debut in the crucial clash with Hartlepool, as Tony Philliskirk's outfit try to lift themselves away from the League One drop-zone.
Oldham are also expected to announce Lee Johnson as their new manager on Monday afternoon.