Smith refused to confirm whether fringe men such as Charlie Adam had been told they could leave, and claimed there was no certainty anyone would depart in January.

But he added a first-team squad of as little as 18 experienced players could be a manageable size, signalling a likely cull of his 28-man pool.

Names such as Christian Dailly, Steven Smith and Brahim Hemdani look unlikely to play for the first team in the foreseeable future and could be on their way out.

Smith, whose team face Dundee United in the early Clydesdale Bank Premier League clash tomorrow, was loathe to talk about the transfer window.

And although he denied sparking speculation there would be an exodus, he later admitted he could handle a much reduced squad.

"I kept reading that everybody said we have a squad of 28 players and that's too big, so it would be natural to assume that we will possibly lose a few players," he said.

"Again, how do we know whether we are going to lose any players or not in the transfer window? Will somebody come in for them? Nobody knows.

"What I said was 'Having 28 players, we would naturally have to lose a few before we bring some in'. That would be obvious."

The Ibrox club's early European exit, coupled with the flurry of signings Smith made after taking over from Paul Le Guen, has left several players surplus to requirements.

"The reason we have 28 players is fairly natural," Smith said. "When you come in and you make changes, you build up a squad. Contractually, you have to keep them.

"So we reach a stage where we know we have to adjust that if we can.

"Even if we don't lose a player and there is maybe a certain player comes available for a specific position we are looking for then we would try and add to that if we could.

"If we were running with a group of around 18-20 with a few younger players who are just about ready to come up to our squad, I think you would be looking at a decent number to operate on."

However, Smith added: "We have had no inquiries so far."

Striker Kenny Miller insists fringe players are made to feel part of the squad, but he understands if they want to move.

"Even the players know we have a big squad," Miller said.

"We know everyone is not going to play so it's about trying to keep it together.

"We do that, we all want to win and get the title back this year."

But he added: "I've been in the position myself where you are not playing and you want to play first-team football.

"So I don't think anyone at the club, if anyone wanted to move on for that reason, would hold it against them."

Smith grew frustrated with transfer talk ahead of a trip to face a United side who have lost just once in 14 matches.

Craig Levein's team came within a minute of winning at Ibrox during that run, only for Kevin Thomson to secure a 3-3 draw with a spectacular strike.

And Smith expects another entertaining contest at Tannadice.

"We had a smashing game at Ibrox earlier in the season," Smith said.

"I think anyone who was at that game would have thoroughly enjoyed it.

"I think in Scotland we don't get enough praise at times for the standard of game we sometimes put on.

"That was an excellent match and hopefully tomorrow will be every bit as good.

"Both the teams have good defensive records. I said to Craig after the last game, we seem to throw that out the window when we play each other.

"I don't know what it is about the fixture but certainly, from the spectators' point of view, they are getting great value."

Smith believes Levein will ensure a bright future for the club he played and coached at.

"I think Dundee United have a stable environment for the first time in a number of years," he said.

"They have found a manager that they have a great deal of confidence in. And I think that's beginning to show benefits on the pitch.

"I was there for a good number of years and I like to see them doing well, although not particularly against Rangers.

"I hope they could get back into the situation of stability they had when Jim McLean was there.

"By the looks of things, Craig is the person that can bring that to them."