Yet our source at St James' Park says "it's news to me ... and everyone else here! We don't know of any offer".
The Star: "However, Smith is set to reject the offer and move on.
"The former England international, 31, will not be offered a new playing deal at Newcastle when his contract expires next month.
"Smith, signed for £6m from Manchester United in 2007, has made just two appearances for the Toon in the last 12 months.
"Manager Alan Pardew is a big admirer of the Yorkshireman, who he wants to join his backroom staff.
"Smith is keen to keep on playing, though, and looks set to turn down the offer to coach at the club’s academy.
"He spent the second half of the season on loan at League One side MK Dons, scoring in their play-off semi-final defeat against Huddersfield, and believes he has at least another two years left in him."
Smith’s agent Alex Black: “There is a coaching role at Newcastle if he wants it, but I don’t think that will happen."