Starc will replace Jackson Bird in the squad.
The 27-year-old returned home on crutches after bowling with a bruised right heel post the WACA Test, and missed the fourth Ashes Test in Melbourne.
"I think the break he's had from bowling has helped his heel heal," ESPNcricinfo quoted Smith, as saying.
"It's coming along nicely so he's confident and you've also got to take the player's word sometimes. Hopefully, he gets through and he's fine," he added.
Starc's comeback means left-arm spinner Ashton Agar, who was added to Australia's squad for the fifth Test, will not be in the playing XI for the fifth Test.
Australia (probable): Cameron Bancroft, David Warner, Usman Khawaja, Steven Smith (c), Shaun Marsh, Mitchell Marsh, Tim Paine (wk), Mitchell Starc, Pat Cummins, Josh Hazlewood, Nathan Lyon.(ANI)