Smith joins Leicester Tigers teammates Dan Cole, Ben Woods and Tom Varndell in the 27-man squad.
The wing, who scored a try on his England Saxons debut in a 66-0 win over Portugal in January, played a key role as Tigers landed the Guinness Premiership title and reached the final of the Heineken Cup last season.
He will replace Matt Banahan (Bath Rugby), who has been called up to England’s summer tour squad to play Argentina following the withdrawal of David Strettle (Harlequins).
ENGLAND SAXONS SQUAD
FORWARDS
Neil Briggs (Sale Sharks)
Dan Cole (Leicester Tigers)
Phil Dowson (Newcastle Falcons)
David Flatman (Bath Rugby)
Tom Guest (Harlequins)
Stuart Hooper (Bath Rugby)
Chris Jones (Sale Sharks)
Nick Kennedy (London Irish)
Mark Lambert (Harlequins)
Tom Mercey (Saracens)
Luke Narraway (Gloucester Rugby)
Dean Schofield (Sale Sharks)
Peter Short (Bath Rugby)
Joe Ward (London Wasps)
Rob Webber (London Wasps)
Ben Woods (Leicester Tigers)
BACKS
Nick Abendanon (Bath Rugby)
Brad Barritt (Saracens)
Noah Cato (Saracens)
Danny Cipriani (London Wasps)
Shane Geraghty (London Irish)
Stephen Myler (Northampton Saints)
Joe Simpson (London Wasps)
Matt Smith (Leicester Tigers)
Tom Varndell (Leicester Tigers)
Dominic Waldouck (London Wasps)
Micky Young (Newcastle Falcons)