His book follows the fortunes of a lawyer called Danny, a character not unlike Mr Laird himself.
A source who has read the work-inprogress said: "It is a literary caper about this guy's dodgy past catching up with him.
"His best childhood mate is on the run because of his murky paramilitary past and Danny gets caught up in it." Mr Laird's agent, Natasha Fairweather of AP Watt, brokered the bidding war.
She confirmed details of the deal, which was struck late last week, and said: "We are all delighted for Nick. He combines a poet's sensibility with muscular, comic storytelling - to great effect."
Ms Fairweather told the Evening Standard Mr Laird is currently in Ireland - but the dark-haired lawyerturned-author was seen out in London with Smith this week.
Smith, 27, who lives in Kilburn, received a reported advance of £250,000 for her first two novels and is currently working on her third.