However, Adam Voges made the cut, despite being axed at the age of 37 from the Australian squad and facing a struggle to play for his country again.
The middle-order batsman was one of four Australians to make the 12-man squad – opener David Warner and paceman Mitchell Starc joining him in the nominal XI.
But Australian captain Smith could only manage a 12th-man nod.
Warner and Starc both also made the one-day side of the year – the only players to be included in the two teams – joining countryman and allrounder Mitchell Marsh.
For Voges, the recognition would be bitter sweet.
Judged from the period September 15, 2015 until September 20, 2016, it would have been almost impossible to leave Voges out given he averaged 91 over that time.
But comparisons to Don Bradman started to dry up after the July/August three-Test series against Sri Lanka in which he averaged just 20.
Then after two home Tests against South Africa in which he totalled just 30 runs in four innings, Voges was axed.
He still averages 62 for his country across all Tests.
Warner, meanwhile, scored 1020 runs during the judging period at an average of 57.
Smith was unlucky not to be in the 11, given his 1004 runs at 67, but left-arm quick Starc’s 37 wickets at just 18 made him an easy choice.
England’s Alastair Cook – who is under the pump after his side’s just completed 0-4 Test thrashing in India, was named captain of the team which includes another three Englishmen and a player each from New Zealand, India, Sri Lanka and South Africa.
Also featuring in the Test side was India’s offspinner Ravichandran Ashwin who was in turn named ICC Cricketer of the Year and Test Cricketer of the Year.
Former Test stalwarts Rahul Dravid, Gary Kirsten and Kumar Sangakkara selected the sides.
ICC Test team of the year:
1. David Warner (Australia)
2. Alastair Cook (England) (capt)
3. Kane Williamson (New Zealand)
4. Joe Root (England)
5. Adam Voges (Australia)
6. Jonny Bairstow (England) (wicketkeeper)
7. Ben Stokes (England)
8. Ravichandran Ashwin (India)
9. Rangana Herath (Sri Lanka)
10. Mitchell Starc (Australia)
11. Dale Steyn (South Africa)
12. Steve Smith (Australia)
ICC one day team of the year:
1. David Warner (Australia)
2. Quinton de Kock (South Africa) (wicketkeeper)
3. Rohit Sharma (India)
4. Virat Kohli (India) (capt)
5. AB de Villiers (South Africa)
6. Jos Buttler (England)
7. Mitchell Marsh (Australia)
8. Ravindra Jadeja (India)
9. Mitchell Starc (Australia)
10. Kagiso Rabada (South Africa)
11. Sunil Narine (West Indies)
12. Imran Tahir (South Africa)
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