Smith, still one of the highest paid players on the books, is yet to feature in a Premier League game for United this season but Pardew is still determined for him to remain on Tyneside to keep competition for places strong.
"There's no chance of Alan going out on loan," Pardew told the Sunday Sun.
"I think at the moment I'm fortunate in that most of my players in and around the squad are fit. The competition is tough just to get on the bench.
"That was a major problem for me last year, I was sitting on that bench and one game I had young Tav (James Tavernier), young Sammy Ameobi - and that was a year ago, not where he is now - and Donaldson was on one of the benches for a Premier League game.