TheTimes of India reported that players would not be paid if the IPL was cancelled. The tournament has been pushed back to April 15.
Smith's time is now being spent in his home gym,playing guitar and going on 10-kilometre runs with the sporting world in limbo.
Mid-year tours of Bangladesh and England must be in major doubt and beyond them the Twenty20 World Cup and home Test series against India are scheduled for next summer.
"It's obviously not looking likely[the IPL will go ahead] at the moment,"Smith told Nine'sSports Sunday.
"I think there might be some meetings over the next few days to discuss what the go is with it all.
"I'm just trying to stay physically and mentally fit and fresh and,if it goes ahead at some point,then great.
"And,if not,there's plenty going on in the world at the moment. So just play it day by day."