The Chelsea midfielder joined Villa on loan last summer.
After a bright start at Villa Park, Barkley has not started a match since February and Smith says no permanent deal has been negotiated with Chelsea.
Asked if there has been talks with the Blues, Smith said: "No, Ross Barkley came in on loan at the start of the season.
"Obviously, Frank Lampard was the manager at the time we brokered a deal to bring him in on loan.
"That's where it was.
"He's got another two years left on his contract at Chelsea and that's not been discussed at all."