Smith is the longest serving player at Portman Road but has been relegated to a substitute's role for most of this season.
"When I made the original decision to take a break for a year, I was playing week in, week out for Ipswich and I wanted to focus all my energy into my club performances," said Smith.
"With New Zealand only having friendlies lined up this year, I believed it would give me the chance to recover after the long flights, but after speaking with the gaffer here he felt it would be good for me to play at international level and get some football."
Smith added that a personal meeting with new All Whites coach Anthony Hudson also played a big part in his decision.
"I met with [Anthony] recently for a coffee and a chat," said Smith.
"I really appreciate the new head coach taking the time out to come and meet me over here. He was doing the rounds with the English-based players and I think that shows how much he all wants us on board and I'm looking forward to representing the All Whites again."
The All Whites play China on November 14 and Thailand four days later.