Quoting onlookers, the Daily Telegraph reported that Smith allegedly pushed Clarke after an argument leading to a fight which ended only after the bouncers threw out the rugby player.
Clarke's manager Lisa Stallard confirmed the incident but played down any major altercation.
''There was a bit of mucking around that got out of hand,'' Stallard was quoted by the daily as saying.
''The bouncers weren't happy with it and Tim go the raw end of the stick and got thrown out,'' she said.
But witnesses who saw the duo said the incident did get out of hands leading the bouncers to intervene.
''They were in each other's faces. Then Smith pushed Michael Clarke and he got kicked out,'' a patron was quoted as saying.
''There were a lot of people around. (Smith) was carrying on like he owned the joint,'' another eye-witness said.
The incident took place at a hotel in southern Sydney.