In the foggy afterglow of the All Blacks' completion of a Grand Slam at Twickenham yesterday, the 51-year-old Smith confirmed he had spurned the advances of Swansea-based Ospreys -- one of a host of European clubs interested in acquiring his services.
Speculation about Smith's future has been rife since the team arrived in Dublin for the test against Ireland on November 15.
Reports linked him to the head coaching role at Ospreys vacated by Lyn Jones in May with the club's elite performance director Andrew Hore -- the New Zealand Rugby Union's former high performance manager -- nominating Smith as the ideal replacement.
Once the All Blacks moved on to Cardiff Smith reiterated he had a review clause built into his contract and was keen to exercise it when he returned to New Zealand, saying the travel demands where putting stress on his family.
However, as the All Blacks rounded off their 15-test season with a 32-6 victory over England Smith had made the call to stay put after negotiating a reduction in his travel commitments with NZRU chief executive Steve Tew and chairman Jock Hobbs.
"Obviously I've had to resolve some of the time away from home issues which I've done with Tewy and Jock," Smith said.
"I've probably got more ability now to control the more peripheral activities of being an All Blacks coach -- the high performance stuff (around New Zealand).
"I'll still do it but I'll have a bit more control over how much I do."
Smith said he had been in regular contact with his wife Trish throughout the All Blacks' end of year tour and the family agreed he should continue.
The success of the All Blacks this season -- 13 test wins and just two losses -- also encouraged the former 17-test first five-eighth to carry on until at least the end of 2009.
"Ultimately it comes down to these fullahs here," he said while sitting alongside head coach Graham Henry and fellow assistant Steve Hansen.
"I love the jersey and the people I coach with, the management team and the players are pretty special. I don't think you can get that anywhere else."
Smith said the bonds formed on the five-week tour were a timely reminder of the passion he has for the side.
"It's been handy being away on tour I suppose. Sometimes you have to give yourself a little upper cut and remind yourself of what you've got."
Henry was delighted Smith had opted to remain on the coaching panel.
"He's the best in the world at what he does. His presence is this group of people is huge. I was chuffed actually," said Henry when Smith told him he was staying.
Smith was John Hart's technical adviser in 1998 and 1999, then head coach for two years before he was replaced after the 2001 Tri-Nations by John Mitchell.
After three years with English club Northampton he returned to New Zealand to be Henry's backs coach in 2004.
Though relieved to have Smith recommit, Henry admitted it would be a challenge to keep his coaching team intact in the lead-up to the 2011 World Cup.
Scrum guru Mike Cron and kicking coach Mick Byrne are also highly rated and regularly subject to overtures from overseas.
"It's going to be a continuous challenge, some people want to further themselves as coaches and do other things. There will be natural movement from time to time."
Henry was more confident his playing roster would remain intact as they seek to build on this season's defence of the Bledisloe Cup, Tri-Nations title, the Grand Slam and yesterday's other reward -- the Hillary Shield.
"I hope New Zealand looks after them and they want to stay," he said.
"I'd imagine the core of those who played last will still be here in 2011 but as you can appreciate there will be people knocking on their doors."
Meanwhile, Henry and co could shed no light on whether 45-test tighthead prop Carl Hayman might return home from Newcastle before his Stg350,000 ($NZ993,000) a season contract expires in mid-2010.
"We've heard the same rumours you've heard," forwards coach Hansen said.
"I've spoken to him since we've been over here but I haven't spoken to him about coming home, we've just talked about how he's going.
"Carl will make his mind up and do what's right for him and (partner) Natalie. If that means coming home that'll be great."