England head coach Stuart Lancaster had travelled to South Africa for talks with Smith recently, reportedly offering him a variety of roles.
However, Smith took up a two-year contract with Super Rugby side the Chiefs following the World Cup and has decided to remain in New Zealand for 'family reasons'.
The Rugby Football Union also confirmed that former England back Mike Catt will join the coaching team for the summer tour of South Africa.
Catt is currently attack coach at London Irish but is leaving the club this summer as part of a restructure of the club's backroom staff.
The World Cup winner will join Lancaster's coaching team next week after completing his duties with the Exiles after their final Aviva Premiership match against Gloucester on Saturday.
The South African-born former England utility back will leave London Irish after Saturday's final Premiership game against Gloucester for England duties from May 7 to June 30.
England head coach Stuart Lancaster said in a statement: "Mike has played at the top level and is highly respected. He has done a great job whilst coaching at London Irish and we are looking forward to working with him on this South Africa tour.
"He is experienced in playing in South Africa and this will be invaluable as we prepare for this challenging and exciting tour."
Culture
Catt, who helped England win the 2003 World Cup during 75 appearances, is looking forward to returning to the international fold under Lancaster.
"I was very impressed with England during the Six Nations, not just the way they played but the culture that is developing, and hopefully I can complement what Stuart and Graham are doing," he said.
"There are some talented young players coming through and the chance to work with them for the Barbarians game and the tour is really exciting.
"I'll be sad to leave London Irish and I want to say a huge thanks to all the players and coaches I have worked with since 2004.
"Toby Booth in particular deserves massive credit for what and how he has taught me. Thanks also to the supporters who have been brilliant over the last eight years and I will take away some lasting memories."
England open their three-Test tour of South Africa in Durban on June 9.
The second Test will be played in Johannesburg on June 16 after a midweek match against the South Africa Barbarians in Kimberley on June 13.
They then play South Africa Barbarians North in Potchefstroom on June 19 before the final Test in Port Elizabeth, Catt's birthplace, on June 23.
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