The singer reportedly wants his friends and family to refer to him as "they" rather than "he", six months after revealing he does not identify as male or female.
Smith revealed earlier this year he had questioned his gender and considered a sex change.
He has now asked his friends and family to use a different pronoun.
According to The Sun, a friend of the 27-year-old singer said: "This is a decision Sam has thought long and hard about, including doing a lot of reading on it.
"He knows that it will take some people longer than others to fully get it.
"First the request is going out to mates and then it will be passed on to the music industry too. It's an exciting and groundbreaking time."
Sky News has reached out to Smith's general manager for comment.
The singer has not directly commented on the matter on his social media channels but he has responded to a tweet by comedian and radio presenter James Barr.
Barr, after interviewing Smith on 9 September, wrote: "...they sounded so happy and free and more themselves than ever. It's made me feel like the world is a good place again."
Smith replied: "You're one of the first people to use these pronouns with me. Thank you. That feels really beautiful."
In an interview with actress Jameela Jamil on her I Weigh show in March, Smith revealed he does not identify as male or female.
The singer opened up about being non-binary, saying: "You are just you. You are a mixture of all different things. You are your own special creation. That's how I take it.
"I'm not male or female. I think I float somewhere in between."
Smith revealed he had considered having a sex change, but had decided it wasn't something he really wanted.
Many non-binary people do not identify as either male or female and refer to themselves as they or them, rather than he or she.
The singer won an Oscar for best original song for Bond theme Writing's On The Wall in 2016, and dedicated his award to "the LGBT community all around the world".
In his speech, he said: "I stand here as a proud gay man and I hope we can all stand together as equals one day."