The 28-year-old joins compatriot Chris Lynn as well as Chris Gayle and Shahid Afridi for the month-long tournament.
Australia batsman David Warner, who also received a year-long ban for his role in the South Africa scandal, is expected to join the June 28-July 16 tournament as a marquee.
Global T20 Canada will have a total of six teams with five representing Canadian cities -- Edmonton Royals, Montreal Tigers, Toronto Nationals, Vancouver Knights and Winnipeg Hawks.
The players' draft will be held next week.
Cricket West Indies will have a representative team in the event with only Caribbean players. All matches will be held at the Maple Leaf Cricket Club near Toronto.
Smith and Warner will not be available for Australia until April next year. Batsman Cameron Bancroft was handed a nine-month ban for the tampering incident.
Australia, captained by Tim Paine, head to England to play a series of limited overs matches next month, their first international cricket since the ill-fated South Africa tour.
(Reporting by Shrivathsa Sridhar in Bengaluru; Editing by Ian Ransom)
