Minogue will appear alongside comedian Peter Serafinowicz, Mathew Horne and Homeland's David Harewood in Hey Diddly Dee, a dark comedy centred around a play about Andy Warhol.
Minogue's character is said to be inspired by Edie Sedgwick, with Serafinowicz playing the Warhol character. Hey Diddly Dee will be directed by Hustle actor Marc Warren.
Meanwhile, Smith will make his directorial debut with Cargese, described by the broadcaster as a drama which "mines the tragic seam of adolescent love and loss".
Set in south London, Cargese will star Submarine actor Craig Roberts and is written by Olivier Award-winning playwright Simon Stephens (On the Shore of the Wide World). Filming begins later this month.
"Sky Arts offers creative opportunities that many other channels don't," said Smith in a statement. "To collaborate with Simon Stephens in this capacity was a thrilling and rare opportunity, and one we both were keen to embrace."
Luther and The Wire actor Idris Elba will also direct Anna Friel in The Pavement Psychologist.
Elba, who also wrote the drama, said: "This was a tremendous opportunity that allowed me to showcase creativity that I don't always have a chance to share with the public."
Suranne Jones, Ricky Tomlinson and Vanessa Redgrave will also be involved in the new series of Playhouse Presents, which gets underway in March.
Watch a trailer for Kylie Minogue's latest movie Holy Motors below: