Smith, who has been the franchise's best player this season, and a stand-out for the All Blacks in their just completed whitewash of France, is off contract at the end of the year with both the Highlanders and the New Zealand Rugby Union.
Highlanders general manager Roger Clark said the Highlanders and the NZRU had been negotiating with Smith for a while and were keen to sign him to a long-term contract.
''We have been working with him since last Christmas and, along with the New Zealand union, want to keep him as long as possible in the country,'' Clark said.
''If he stays in the country then he will stay with the Highlanders. We have put our best foot forward to keep him in New Zealand.
''We all know that the money offers that he can get from overseas are always more than we have got. We can't compete on money terms. But from a rugby perspective, we have got a lot to offer here.''
Smith, a King's High School old boy, has only ever played for the Highlanders in New Zealand and made his debut for the franchise in 2009.
He has now played 69 games for the franchise, and played his 15th test on Saturday, having made his All Black debut in 2009.
Clark said the Highlanders were limited in what they could offer under the collective agreement between the NZRU and the New Zealand Rugby Players' Association.
Under the employment contract, the most the Highlanders can pay any player is $180,000 a year, though this will rise to $185,000 next season when the new collective contract comes into play.
The NZRU tops up Smith's remuneration through its own individual contract with the player.
Smith, who turned 27 at the start of this month, is seen as one of the key backs for the All Blacks in the next few years.
There were suggestions Smith would be given a sabbatical in the next couple of years to keep his body and mind fresh.
Clark said negotiations never took a standard amount of time. Some were relatively quick, while others could take a lot longer.
''Sometimes it can taken longer than you imagine, for different reasons. But we have not spent a lot of time on it. We have just worked on it with Ben when it has fitted in.
''Some guys like to get it over and done with all at once while others like to just take their time and get the season out of the way before they start thinking about contracts.''
Asked if he was confident Smith would re-sign, Clark said he would like to think Smith would stay with the Highlanders but until the ink was on the paper, ''nothing can be confirmed.''
Smith's agent, Warren Alcock, could not be contacted. Smith has previously said he was just concentrating on the Highlanders' season.
Losing Smith would be a huge blow to the franchise but it is hard to see the fullback going anywhere, having played all his rugby in the South.
He is highly rated by the national union and is seen as the logical successor to All Black centre and namesake Conrad Smith.
But in 43 games for Otago since 2007, and 69 for the Highlanders since 2009, Smith has played only five times at centre. He has played there just once for the Highlanders, in 2010, and just four times for Otago, also in 2010.
