But he admits the current financial state of the game north of the border means the introduction of two 10-team leagues is the most viable solution.

All 12 Scottish Premier League clubs met earlier this week to discuss league reconstruction, with a working party proposing a two-tier SPL, with 10 teams in each division.

"I just think it's very difficult in Scotland to try and achieve the balance in terms of the number of teams who are going to be involved in the league," said Smith.

"I would think the two leagues of 10 - as long as we were trying to make sure the second division was trying to raise its standard and facilities and so on so that we would eventually have 20 teams who were of a good level.

"That would maybe give us the option to come into line with a lot of leagues in other countries.

"It's very difficult for a small country to substantiate a level of 18 first-class teams in the current financial market and I think that's the difficulty that people have in terms of making the decision.

"There is a solution that suits everyone if you have a whole load of extra finance coming in. That would be the answer to everyone's problems.

"I don't think there is any doubt that an 18-club league would be what everyone would want.

"But it's trying to get 18 of a very good standard that will attract television money. It's a very difficult environment that we find ourselves in at the moment."

The plan to reduce the SPL from 12 to 10 teams has already been met with opposition from Dundee United, Kilmarnock and Inverness.

But Smith pointed out that United were one of the teams who thrived the last time the top-flight comprised 10 clubs.

"I'm a football manager, I'm not going to determine anything," he said.

"We had a 10-team league before and I don't think Aberdeen or Dundee United would have complained about a 10-team league at the period of time when they had a level of success.

"I was at Dundee United at that time when they had the 10 teams. It's not perfect but I think it's better than what we've got at the present moment with the split.

"Dundee United and Aberdeen achieved a level of success during that period of time and certainly that was when they were at their most competitive in recent seasons. It didn't do them any harm at that stage.

"From my point of view, it's a very difficult decision for people to make.

"They are not going to make everyone happy but it didn't do us any harm with the 10-team league before."

He added: "It's always difficult to get the proper balance between the finance and what you might think is the proper thing to do.

"It's not a decision that I envy everyone making. It's a very awkward one.

"I'm not up to speed with all the financial aspects that are involved in it, television money, splits of finance or whatever.

"When I read that the 10-team league is not the thing for Scottish football, I don't think the league are saying that it is, but I think it might be one of the things they have to do to reach an end.

"Everybody can only hope that it leads to a more competitive environment for us."

Meanwhile, Smith his dismissed speculation linking Rangers with reported Celtic target, Norwegian striker Erik Huseklepp.

"I think there is a wee bit of fantasy football going on there," he said.

"We have never enquired about that player."