The 35-year-old former Fulham, Crystal Palace, Charlton Athletic and Cardiff City defender, who has played over 100 games for the Terriers since joining in 2014, has made a decision to call time on his career.
The good news for Hudson, though, is that Terriers boss David Wagner has handed him a role in the newly-promoted club's backroom staff.
Huddersfield are in the top flight for the first time since 1972 and open their campaign at Palace on Saturday.
Back in April of previous year, Hudson had already joined the backroom staff as a player-coach and now the move will mean he can continue with his studies on his UEFA A Licence course.
Smith fractured his foot in the Championship play-off final win over Reading in May and has missed the bulk of pre-season but, after Mark Hudson's retirement was confirmed this week, his successor as skipper has declared himself fit to lead the team out at Selhurst Park.
Hudson also won promotion to the Premier League with Crystal Palace and Cardiff City and played almost 500 games in his 18-year career.
In gearing up for their first crack at the Premier League, the Terriers brought in striker Steve Mounie from Ligue 1 side Montpellier for £11 million, midfielder Aaron Mooy from Manchester City for £8 million, forward Tom Ince from Derby County for £10 million and winger Elias Kachunga from Ingolstadt for £11 million.
His exact role has yet to be defined but, in the interim, he will support the preparations and training for Town's Premier League debut in 2017/18 alongside Wagner and the technical staff.
- Crystal Palace have won only one of their last six opening-day matches in the Premier League, losing four of the last five (W1 D1 L4).
"(Huddersfield) played as we expected, exactly what they showed last season, so it was no surprise.
"But he knows his quality can be better when he plays regularly". Jonas Lossl was outstanding in the goal, we had the right team spirit, the right togetherness, I think we deserved this win.