Castleford Tigers bidding to make Daniel Smith more "durable" in 2021
Tigers have confirmed the ball-handling front-row will stay on for 2021 and Powell is hoping to see the 27-year-old reach new levels of performance.
Smith, who joined from Huddersfield Giants in April last year, knows competition for places will be tough.
Castleford have the likes of Australian veteran Grant Millington, George Griffin, Tyla Hepi and Suaia Matagai - who has joined on a season-long loan from Huddersfield - all on board.
But Powell said: “I’m delighted that Dan is staying at the club. For me, he is a similar sort of player with the ball to Grant Millington, in that he can use the ball well because he has got good skills.
“We’re working hard with him to make him a little bit more durable and I’m pleased we will keep working with him.
“I think we are going to see the best out of him.”
Smith played all seven of Castleford’s opening games this season before it was shutdown in March, helping them rise up to second place.
However, once rugby league resumed again in August, he suffered a setback with a pectoral injury sustained against Wigan Warriors.
On the deal, Smith - the older brother of Leeds Rhinos loose forward Cameron Smith - said: “I’m over the moon really.
“It’s been a mad year with Covid so it was pleasing to get it over the line and get everything sorted.
“I am really looking forward to next year. I’m enjoying my rugby again.
“I don’t think I was enjoying as much as I should have been when I was at Huddersfield.
“Maybe because it’s my hometown club that I’m playing for now makes it a bit more special.”
Tigers director of rugby Jon Wells added: “We are really pleased that Dan goes around again with us in 2021.
“It is a big year for him; I think he’s shown more than enough to justify another deal, and this gives Dan the time to move to that next level.
“He is a big, skilful player who for me has yet to realise how good he really can be; this is now Dan’s opportunity to take.”