The Ghana international impressed in the Dutch top flight last season during his last loan spell at the club and now Breda have the 20-year-old for another Eredivisie campaign.
Smoulders was pleased to get another season-long loan deal over the line and is looking forward to having the young winger back in action.
He told reporters: “Last year he proved his value and especially in the final phase of the season he was of great value.
“Thomas is now in a familiar environment so he does not need to acclimatise. Our squad still has the need for a wing player and Thomas fills that position perfectly. We’re glad we can keep him for another season.”
Goalkeeper Wayne Hennessey hopes to remain at Crystal Palace ahead of his deal expiring after holding talks over an extension.
Burnley boss Sean Dyche says he will not be making a raft of signings this summer despite the demands of European football.