Smith (34) and Beauden Barrett (31) have signed with the Toyota Verblitz club and while Smith has committed to playing there long-term, New Zealand Rugby is working with Barrett on a return to playing on home soil.
The two most-capped backs in All Blacks history to date, Smith (114) and Barrett (112 - second equal with Dan Carter), are part of an exclusive group to have won Rugby World Cup and Super Rugby titles.
Smith and Barrett will play for the Highlanders and Blues, respectively, in Super Rugby Pacific this season and be available for the All Blacks through to the end of the 2023 Rugby World Cup in France which begins on September 8.
“From the time I signed my first contract in 2008 until now, I have been living my dream,” Smith said in a statement tonight.
"I have been blessed to represent my home with the Manawatū Turbos, who helped me chase my dream of being a Super Rugby player.
Smith was an integral part of the Highlanders’ maiden Super Rugby title in 2015 and is the team’s most-capped player, with 176 games to date.
Highlanders chief executive Roger Clark said: “You look at Aaron and you think, this guy could go on forever. I know we and every Highlanders fan would want him to.
“Unfortunately, that is not a reality in professional rugby and the time has come to say thank you, good luck, and goodbye. That will not be easy for us, our fans or Aaron. He is such a massive part of the Highlanders story, our most-capped player and surely one of our best ever."
Clark said he wished Smith, his wife Teagan and young boys Luka and Leo all the very best in Japan.
"I would encourage everyone to come out this season and watch the master at work one last time.”
Highlanders head coach Clarke Dermody said Smith has defined what it means to be a halfback "and the way we like to play the game - fast, skilled, and determined for so long it’s hard to imagine a team sheet without his name on it".
“As a team, we can only thank him for all that he has done for us and wish him, Teagan and his family all the best for the future.”
The former Fielding High School student debuted for Manawatū in 2008 and has amassed 47 appearances for the province, becoming the side's most-capped international.
"Aaron's commitment and dedication to Manawatū has been unquestionable,” Manawatū Rugby chief executive Andrea Jackson said.
“That has been made even more clear in recent seasons when he has donned the famous green and white jersey in between his All Blacks duties, in 2020 and 2021.
"We wish Aaron and his whanau all the best for their next adventure, and we hope to see him back one day to bring up his 50th match for Manawatū.”
