The Austrian Under-19 international has agreed a three-year contract at Turf Moor.
The versatile youngster has played for two of the country's biggest clubs after spending time in the academies of both Chelsea and the Gunners, and has been capped up to Austrian Under-19 level.
Burnley FC (@BurnleyOfficial) August 7, 2015
Smith is UK born but qualifies to play for Austria through his grandfather, and he signs up for Sean Dyche's side after impressing in a trial period this summer, with the player joining up with Burnley's development squad this coming season.
He is undoubtedly a talent, with the club's report on him stating that he was chased by Liverpool and Manchester City ahead of his switch to Arsenal.
Speaking to the Clarets website after his move, the midfielder made it clear how happy he was to be at Turf Moor, emphasising that he saw his contribution as coming in the future rather than right away.
“I got a call from Burnley to say they were interested in me and they said to come along for a week," Smith told the club website after sealing his three-year deal.
“I played in the game against Sheffield FC and after the game they said they were happy with my performance, so here I am.
“It’s great to be here, as Burnley are a team that want to get back to the Premier League and hopefully in future years I can add something to the squad.”