With Groves dislocating his shoulder during the final round of his victory over Chris Eubank Jr, it had been rumoured that the beaten semi-finalist could replace the WBA super-middleweight champion in the final.
However, despite the previous insistence that a final must be held before the end of July, the tournament organisers have given the green light for a highly-anticipated clash to take place at the end of August or start of September.
The new WBSS campaign will begin in September, meaning that any setbacks in either boxer's camp will result in a reserve being brought in as a replacement.
Groves will be defending his world title for the third time, while Smith will finally get his opportunity to face a world champion after being left frustrated in his attempts to fight for the WBC crown.
The bout is expected to take place in London or Manchester.