Still only 30-years-old, Smith signed a one-year-deal with big-spending Toulon last June having previously spent his entire career with the ACT Brumbies.
The former dreadlocked star now looks set to join Japanese outfit the Sanyo Wild Knights on a three-season contract reportedly worth £681,000 per year.
Smith will join fellow Australians Sam Norton-Knight - a former marquee signing for Cardiff Blues - and Daniel Heenan, as well as ex-All Black fly-half Tony Brown at the Japanese Champions.
Twice a winner of Australia's prestigious John Eales Medal, Smith won 110 caps for his country between 2000 and 2009.
