The 33-year-old had been playing for professional side Boston Breakers in the US before the Women's Professional Soccer league was suspended last month.
She told BBC Sport: "I've had a couple of offers [to join clubs] in Germany and Sweden, and a couple in England.
"I see myself playing out the last few years of my career in England."
Smith, who was one of five British players affected by the WPS suspension, is currently training with Arsenal Ladies to keep herself fit.
"It's nice to be with the girls training and it's such an elite level," she said. "Some of the best players in Europe are playing for Arsenal so I enjoy that."
Smith added that the launch last year of the UK's first ever semi-pro women's football league will play a key part in her decision.
"One of the reasons I left [England] was because the league was a little bit too easy, it wasn't very challenging," she said.
"But now they've changed it - which I'm ecstatic about and I'm really glad it's happened - it's now more elite and more challenging, so it's definitely an option to play in England.
"Through social media sites like Twitter I followed the games and results [in the WSL] as much as I could, so I always had one eye on the league."
As England's all-time leading goalscorer, Smith hopes her inclusion in the league could help build its profile internationally.
"Hopefully, if I play for a club in England and choose not to go to Europe, players might see that it's a serious league and a competitive one," she said.
"With the suspension of the WPS league you'll hopefully see a couple more players, maybe from America or some of the international players, looking for clubs to play for.
"Two Australian players [Collette McCallum and Laura Alleway] have been signed to Lincoln Ladies, so you might find a bit more talent coming to England."
For now, Smith is focused on an important year that includes the qualifying campaign for Euro 2013 and a home Olympic Games, where a British women's team will compete for the first time.
"It's a big year to try and get in the best shape possible to put yourself forward for it. There's no bigger event than the Olympics," said Smith.
"Hopefully the GB team will do well and people will watch it and see women's football in a different light to what they thought originally."