Tim Paine has stepped down as Australia's Test captain over sexting scandal.
The selectors on Saturday (November 20) reportedly approached Cricket Australia (CA) with a proposal to hand over the reins to Smith.
While vice-captain Pat Cummins remains the frontrunner for the top job, Smith is also in the contention, the country's cricket board said.
Paine on Friday (November 19) announced his shock resignation over what he described as an inappropriate "private text exchange" with a former Cricket Tasmania employee back in 2017-18.
Paine succeeded Steve Smith as captain in the aftermath of the ball-tampering scandal in March 2018.
"There are a range of candidates who are available for that role, Steve Smith is one of the candidates that is available for the role," said CA chairman Richard Freudenstein during a virtual press conference.
Meanwhile, there are also speculations that the national selectors are in favour of appointing Smith as skipper.
"It's understood the selectors were interested in the idea of Smith being able to captain should an injury or similar occur to Tim Paine, with the proposal given the board's approval," sen.com.au ran a story quoting Herald Sun.
Ace fast bowler Cummins, however, remains the top contender.
"However, Smith could be appointed as vice-captain to support Cummins, who would be the first fast bowler to captain Australia since 1956, when Ray Lindwall held the role for a solitary Test.
"Smith was barred from holding a leadership position within the team for two years after the events of Cape Town, with that ban elapsing over a year ago," sen.com.au added.
This development comes weeks ahead of the 2021-22 Ashes series. Uncapped wicketkeepers Alex Carey and Josh Inglis are the frontrunners to take the gloves in case Paine gets axed from the team.
The Ashes 2021-22 is slated to get underway on December 8 at the Gabba.