The 38-year-old released a statement on Twitter and clarified his reasons for not pursuing the role.
“Please see my statement below on the Director of Cricket role for Cricket South Africa,” Smith tweeted.
“Following the news in the media this week that I interviewed for the CSA Director of Cricket role, I feel it necessary to confirm that I have unfortunately withdrawn my interest for the role,” Smith said in the statement.
“I would love to have taken on the role. However, despite my obvious desire to make a difference, during the long and, at times, frustrating process over the last ten or so weeks of discussions, I have not developed the necessary confidence that I would be given the level of freedom and support to initiate the required changes,” he added.
“My passion for our nation's cricketing fortunes remains steadfast and I give my heartfelt best wishes to whoever does take the role on. I will continue to support the teams and give my advice and guidance whenever I can,” Smith concluded.
South Africa has had a bad run this year as the side first lost the home Test series against Sri Lanka. After that, the Proteas failed to reach the semi-finals of the ICC Men's Cricket World Cup. In the recent Test series against India, the Proteas were whitewashed 3-0.
CSA's interim director of cricket, Corrie van Zyl, was also recently suspended following a controversy related to owing of money to players for last year's domestic T20 competition.
South Africa will next take on England in a four-match Test series, slated to begin from December 26.