Smith, who has starred for both the Highlanders and the All Blacks this season, is one of five players nominated for the award, which will be handed out early next month.
Smith is nominated alongside Springbok lock Eben Etzebeth, Italian No 8 Sergio Parisse, Welsh and Lions fullback Leigh Halfpenny, and All Black No 8 Kieren Read, who looms as the favourite.
Read had had a top year for the All Blacks and would appear to be a shoe-in for the award, having put together some dominant displays for the All Blacks this season.
Smith, though, could have hardly played better in the black jersey this season.
He has scored 11 test tries this year, including a record eight in the Rugby Championship.
Playing on the right wing for the All Blacks, the Green Island club man took every chance that came along. He has not had the same opportunities since moving to centre in the past month.
Both Smith and Read were due to play their last game of the season for the All Blacks against Ireland in Dublin this morning.
The awards are voted on by a committee of former players, including former All Black captain Tana Umaga. The public can vote for the award but the final say is made by the committee.
Awards for coach and team of the year will also be handed out next month.
All Black first five-eighth Dan Carter won the premier award last year.
