The 35-year-old had signed a playing contract for 2020 but has U-turned on that decision to move behind the scenes
Daryn Smit has retired from professional cricket to become Derbyshire's head of talent pathway.
The 35-year-old was originally signed up for the 2020 season after helping the Falcons reach T20 Finals Day.
But instead, he has ended his 16-year career to move behind the scenes in an effort to improve the number of home-grown players the club produce.
Smith's role will see him work with the Derbyshire Cricket Board and local clubs to identify and nurture the best talent.
“My goal was always to go into coaching and this is a brilliant opportunity for me, at this stage in my career," the South African-born wicketkeeper, who made more than 350 appearances across all formats during his career, said.
"To finish playing now to take this role is a small sacrifice to make.
“I have had a long and enjoyable playing career, the club have been brilliant to me, so this is a chance for me to give back to them and the youngsters that are coming through our pathway.”
Derbyshire head of cricket Dave Houghton: “Daryn is a tremendous young coach and he has shown great leadership qualities throughout his work with the Second XI.
“With this appointment, there will be more emphasis on the Academy and the long-term goal of developing local players to play professional cricket for Derbyshire.”