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Yes, Tech 3 are looking to secure another 2-yr deal with Yamaha, and I think they soon will. Probably with hand-me-down factory kit again.
As to rider line-up, it's massively complicated right now, as Yamaha want Espargaro in the team, Herve and Monster Energy want Cal in the team, and Bradley has a 2-yr deal ongoing. I don't know how it's all going to be resolved but I'd be very surprised if Smith isn't on an M1 prototype again next year. I think his contract and personal sponsors Monster Energy will see to that.