Smertin revealed "Jose Mourinho asked to meet me in Lisbon. Roman Abramovich was at the meeting too. We agreed I would be in Chelsea's squad for next season. Mourinho told me 'It's entirely down to you'.
"He said some footballers are happy to play for a less prestigious club if they are always in the first team, while others are ready to fight for their place at Chelsea.
"He told me it would be tough and asked if I was ready for it. I said I was.
"My agent, Paulo Barbosa, has known Mourinho for a long time and he told me Mourinho is never bothered by names or transfer fees, but only by what a player can do."
And Chelsea chief executive Peter Kenyon confirmed Smertin's position when he said: "He's coming back as part of the squad and he'll be vying for a place like everyone else.
"He had a good season at Portsmouth, and we're delighted to have him back."
One person not happy about all this, unsurprisingly, is Portsmouth chairman Milan Mandaric. He told BBC Sport "In one way I can understand his desire to be with the club that bought him, but on the other side I'm very disappointed and not very happy."
Another midfielder who looks set to remain at Chelsea is Mario Stanic. It was widely thought that when he came on as a substitute in the final game of last season at home to Leeds, it would be his swansong for the club. However, it would now appear as if the Croatian will have a part to play next season... And it's not as the tea boy!