New Zealand full-back Ben Smith is said to have exercised an option in his contract to take a sabbatical from rugby later this year.

The 31-year-old has battled concussion issues this season, missing the majority of the recent British & Irish Lions series as a result and is now said to be planning an extended break from the sport.

Smith recently signed a new three-year contract with New Zealand Rugby which includes a break clause, an option taken up by All Blacks greats Richie McCaw and Dan Carter in the the past.

Reports in New Zealand claim the Highlander is set to sit out the remainder of the year after the second Bledisloe Cup game against Australia on August 26, which will take place in Smith's hometown of Dunedin.

Should Smith decide to take a break then he would miss four of New Zealand's Rugby Championship matches, the third Bledisloe Cup clash with the Wallabies and the three-Test northern hemisphere tour at the end of the year.

Having sat out the last round of Super Rugby matches, Smith is expected to return to action for the Highlanders for the quarter-final clash against the Crusaders next week.