1:48 PM ET

1-ranked golfer in the world and is reportedly set to join the rival LIV Golf series, was assessed a 2-stroke penalty before the start of the final round of the FedEx St. Jude Championship.

Smith played his ball from the incorrect spot on the fourth hole in the third round. Smith was assessed a two-stroke penalty for playing ball from the wrong place.

Smith took a drop after hitting his ball into the water on the par 3 fourth hole.

Smith was two shots behind leader J.J. Spaun after signing for a 67. He was 4 strokes behind after the penalty.

The Rules of Golf state that when a player's ball comes to rest in an area where play is not allowed, the player must take relief. If the player plays the ball from a no play zone or wrong green, the player gets two penalty strokes.

Smith's tee shot went left into the pond. Smith took a couple of clubs. His ball hit the red penalty-area line after rolling back toward the water. He tried to chip his ball into the hole, but he missed.

According to Gary Young, the chief referee for the PGA Tour, Smith's ball was very close to the penalty area on Saturday. Young spoke to the rules official who was on the fourth hole, but Smith didn't call him for a ruling.

"It looked like his ball was close to the line, but we felt comfortable that he wouldn't play a ball that was touching the line of the penalty area," Young said during an interview with NBC Sports.

Young said that another member of the tour's rules committee was concerned about Smith's drop. Young said that Smith's ball was close enough to the line that they should probably speak to the player himself.

Smith told Young that his ball was definitely touching the line.

Young said that he wasn't aware that no part of the ball could be near the penalty area. He thought that if the ball was in the general area, he could play it.

Smith said the rules were the rules, according to Young.

Smith moved to the top of the Official World Golf Ranking with a victory in the FedEx St. Jude Championship.

According to the Telegraph of London, Smith was set to become the highest ranked player in the league. He will get a signing bonus worth more than 100 million dollars and will make his debut in Boston in September.

Smith was evasive about the report.

Smith said that whenever you need to know anything, it will be said by him.