Other authors who'll get the Tesco treatment are Judy Blume, Philip Pullman and crime-writer Karen Slaughter.
It is backed by a 100-strong academy of authors and critics which includes Margaret Atwood and Philip Pullman.
Other previous winners include Philip Pullman, Anne Fine, Terry Pratchett and CS Lewis.
The DJ is on the longlist for the Carnegie Medal, which counts CS Lewis and Philip Pullman as previous winners.
Philip Pullman, author of the His Dark Materials trilogy, said he feared the loss of "special community centres, dedicated to knowledge".
Children's authors, including Philip Pullman and Michael Morpurgo, have complained the requirement is "insulting" and say they will stop visiting schools.
Children's author Philip Pullman will receive the festival's honorary fellowship, an accolade given in previous years to William Boyd, Kazuo Ishiguro, and PD James.
And echoes of Lyra, heroine of Philip Pullman's His Dark Materials trilogy, can be heard around the colleges, the streets of Jericho and the Botanic Garden.
Smith's TV debut was in the 2006 adaptation of Philip Pullman's The Ruby in the Smoke, which starred former Doctor Who companion Billie Piper as Sally Lockhart.
The protest against the closures was supported by author Philip Pullman, playwright Alan Bennett, singer Nick Cave and bands Depeche Mode, the Pet Shop Boys and Goldfrapp.
The museum's other patrons include Philip Pullman and Jacqueline Wilson.
But after a vociferous campaign, supported by authors including Philip Pullman, the council has drawn up new proposals to keep all branches open, with volunteers helping to run them.
There will also be productions of Pinter's A Slight Ache - one of his early one-act plays, Strindberg's Miss Julie and Philip Pullman's Clockwork, as well as live music and comedy.
Inside a three-level building there would be a vast oasis dedicated to arid climate - or "Blade Runner territory" - and beneath would be chambers with displays whose designers will include musician Peter Gabriel and children's author Philip Pullman.
Lord of the Rings is currently packing them in and last week Philip Pullman author of a trilogy of children's books was awarded one of the world's top literary prizes the Whitbread Book of the Year, the first time that a book aimed at children has carried off this particular award, The Amber Spy Glass, part three of the trilogy.
BBC: News | BREAKFAST WITH FROST | Interview with Philip Pullman
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