Coetzee came under pressure after his side lost eight of their 12 Tests last year, but the 53-year-old was backed by the Executive Council of SA Rugby on Monday following a review.
Former Springbok Smith has been given a role under Coetzee, but will continue as head coach of Super Rugby side Cheetahs.
SA Rugby also revealed that an unnamed ‘major new defensive coach will be confirmed” when contractual details are finalised.
“Our coaching review was focused on the Springboks and we identified two areas to give Allister Coetzee additional support at the head of our most prized national asset,” said SA Rugby president Mark Alexander said.
“Franco Smith will continue the work he began with the backs and attack at the end of last year while we are very excited about the new defensive coach we have identified to address matters raised during the review. We expect to be able to confirm that appointment shortly.
“I would like to apologise to our supporters for the delay in this announcement but assure them that it was necessitated not by a lack of clarity of intent, but by the need to first resolve all contractual issues.
“The outcomes we now have were agreed with Allister some weeks ago.”
SA Rugby Exco reaffirmed support for Allister Coetzee, adds Franco Smith to staff. Johann Ackermann coach SA A side, Chean Roux @JuniorBoks
— South African Rugby (@Springboks) February 27, 2017
Meanwhile, World Rugby Sevens Player of the Year Seabelo Senatla, Handre Pollard, Siya Kolisi, Frans Malherbe and Jaco Kriel have been included in an extended Springbok training squad for the first of three camps in Johannesburg next month.
Ox Nche, Joseph Dweba, Hanro Liebenberg, Warrick Gelant and Wilco Louw are among the other names in the 41-man party.
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