Hutton is having an outstanding season for Rangers and Scotland and was this week linked with Newcastle.

Manchester United boss Sir Alex Ferguson has also hailed the right-sided defender, predicting he "will become a superstar" in time.

And although the Old Trafford club have given no indication they will approach Rangers, top clubs in England continue to be suggested as future homes for the 22-year-old.

Smith said: "He's played extremely well and obviously we're delighted to think his form at club level and international level has been fantastic.

"He's been a big, big bonus to us and he deserves a great deal of credit for the effort he has put in, in the months since the start of the season."

Smith has little time for rumour but accepts clubs will probably be watching Hutton.

"It makes me quite happy if that's the case," he said.

"We can't have anything to do with speculation. But obviously if the player is doing really well it's a benefit to the team, and if he attracts the attention of other teams then fine.

"As long as he keeps playing well for Rangers we'll have no problem with that.

"I don't think we need to put any value on him. He's doing well and if we had other players that were doing exceptionally well and other teams were interested in taking them, then fine - as long as they play exceptionally well for Rangers which Alan is doing at the present moment."

Smith's team have not played since their 2-0 defeat against Barcelona at the Nou Camp on November 7, after their SPL fixture at St Mirren was postponed to allow Rangers' Scotland internationals a weekend off ahead of the Euro 2008 qualifier against Italy.

The break has allowed Smith to reflect on his side's start to the season.

The campaign began with seven straight wins but inconsistency has crept into Rangers' performances and results since.

When they face Falkirk tomorrow in the Clydesdale Bank Premier League, in which they lie second, Smith will emphasise to his players that they must stop dropping cheap points.

He flatly rejected a suggestion he might look to rest players at Falkirk, ahead of Tuesday's Champions League match at Stuttgart, so the Bairns are set to face a full-strength Gers team.

"The league's important to us and we've dropped a number of points in the first quarter of the season," he said.

"We've got to try to make sure we don't do that in the second quarter, so therefore we will overcome any difficulties we have going to Stuttgart when we get there.

"We have difficulties we've got to overcome against Falkirk and there will be no thought of leaving anybody out with the Tuesday night game in mind."

Smith recruited 12 players in the summer and has given them time to settle in to their new surroundings before passing judgement. He is "satisfied" the team are in a reasonable position in the SPL, with Celtic's lead just three points at the moment.

But Smith will want to see more cohesion over the rest of the campaign now the players are more familiar with each other.

He said: "When you look at our own situation, we had a lot of changes on our playing staff.

"We have to get a group together and experience the difficulties of playing in the SPL as well as trying to do well in Europe.

"So while you make the point that it's not championship form and I would agree - I don't think it is - we find ourselves three points off the top of the league.

"And from that aspect of it we would be quite satisfied with how we're starting to get a team together to play under fairly strenuous circumstances, in terms of the number of games and the importance of games, especially the European ones as well.

"We've had eight of them now, qualifying games and in the Champions League.

"That takes a lot out of any team, not just ones who are trying to find their way.

"Hopefully we can improve on that, we know that we have to improve on it, so that's where the importance is of the league games coming up."

Smith is set to hand Thomas Buffel a recall before Christmas. The 26-year-old Belgian midfielder has missed almost a full year with serious knee problems, but his form for Rangers reserves has caught the eye recently.

Buffel is eager to be involved, but Smith has urged him to wait for his chance.

Smith said: "He's back now and he's ready to be involved with the first team.

"He will have an introduction into the first team within the next few weeks and he's ready for that and he's wanting that at the present moment, and I appreciate that.

"But it may take a little bit of patience before he gets the opportunity."