This was my (pretty sad) attempt at using a bump function to fix smoothness:
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First, let's write a precise formula for f. Take a coordinate system (U,phi) such that phi(U) = R^n, and B:=phi^-1(B^n) the preimage of the open n-ball. Then f is the composition of the quotient map M-->M/(M-B) followed by the obvious homeomorphism M/(M-B)-->R^n u {∞} --> S^n that sends [M-B] to ∞ to N (north pole) and p in B to d o phi(p) to s^-1 o d o phi(p), where d is the dilatation map B^n-->R^n: x-->x/(1-|x|) and s is the stereographic projection missing the north pole.
With respect to the chart (U,phi) and to the stereographic projection missing the south pole s', the map f is
x-->N if x is in R^n\B^n, x-->s' o s^-1 o d if x in in B^n
This fails to be smooth at most points of ∂B^n.
So I though ok, let's make f locally constant in a nbhd of ∂B^n. I took a bump function psi:R-->R that is worth 1 locally around the origin and that has support in (-1,1) and used it to define a map rho:closure(B^n)-->closure(B^n) that pushes closure(B^n) outward applying the outer annulus of width ½ onto ∂B^n:
rho(x) = 0 if x=0, rho(x) = (1-psi(|x|²))x/|x| + psi(|x|²)x otherwise
This is smooth.
Then, according to plan, define sigma:R^n-->S^n by
sigma(x) = N if x is in R^n - B^n and sigma(x) = s^-1 o d o rho if x is in B^n
and define f instead by
f(p) = N if p is in M - B, f(p) = sigma o phi(p) if p is in B.
With respect to the chart (U,phi) and to the stereographic projection missing the south pole s', the map f is now
x-->N if x is in R^n - B^n, x-->s' o s^-1 o d o rho if x is in B^n.
Sure f is now smooth on ∂B^n, but what about elsewhere?
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What do other people think? Is the search for a smooth version of f bound to fail?