The South African Test skipper will be undergoing a surgery on his left ankle, which has been bothering him over the last couple of months. The recovery period after the surgery is expected to be around two months.
The decision to undertake the surgery was taken after consultation with Cricket South Africa's (CSA) ankle specialist, who detected an impingement syndrome of the ankle and recommended surgery.
"Graeme went to see CSA's ankle specialist in Cape Town on Friday and he confirmed that the best management of the chronic pain in his ankle is surgery," said Proteas team manager Mohammed Moosjee.
"The recovery period after such a surgery usually takes 8-10 weeks, and he will subsequently not be able to represent Pune Warriors at the 2012 edition of the Indian Premier League (IPL) in India."
The surgery will be performed next Tuesday so that the opener has enough time to recovery ahead of South Africa's tour of England in July.
Talking about the upcoming IPL season, Smith said, "I'm very disappointed to be missing out on the IPL this year. I was looking forward to my second season with Pune Warriors, especially after my knee set me back last season. I would like to wish them all of the best this year, I'm sure the new management and exciting new signings will be a positive boost for the side."
"My ankle has been troubling me for some time so it will be a relief to have it repaired, especially looking ahead to the crucial year of cricket ahead."
This is not the first time Smith has missed IPl due to an injury. In 2010, the explosive opener ruled himself out of the entire season-III due to a finger injury. He was at that time a member of the Rajasthan Royals team. Smith had fractured his right middle finger while fielding in a match against Delhi Daredevils.