The 2-0 reverse in Tbilisi means Alex McLeish's men must now win against Italy at Hampden next month to book their place at next summer's finals in Austria and Switzerland.

Despite the magnitude of that task, former national team boss Smith is confident Scotland can still achieve their aim of qualifying for their first major tournament in a decade.

And he insists the events of Wednesday night should not take the shine off the efforts of his players so far.

"What disappointment?" he said. "Scotland have got an opportunity to get to the finals by beating Italy at home.

"If you had said that at the start of the section, people might have thought you were a bit daft.

"I don't think it's a disappointment. If anybody had expected Scotland to get through the group without losing games, then they would be equally daft.

"It's fantastic, it's great that we are going into this last game with an opportunity to get to the finals.

"Yes, it's always disappointing when you lose a game, but I think we all have to look forward to the Italy game.

"We have an opportunity that very, very few of us would have envisaged us having at the start."

Smith may have started the current Scotland revolution before quitting international football for a return to Rangers in January but he is refusing to take any of the credit.

"I'm Scottish and I want the team to do well," he said. "But whether I was involved at the start or not is immaterial.

"The fact is that Alex has done a fantastic job in getting Scotland to where they are at the present moment and that's the main thing.

"We maybe gave them a reasonable foundation at the start but he has had far more games and victories so it's down to Alex. He has done a fantastic job."

As for the visit of Italy on November 17, Smith sees no reason why Scotland should not be positive of a result against the world champions.

"We haven't lost many games at home," he pointed out. "I just think it's fantastic what Alex and the players have achieved to get to that position.

"I don't think we should be too disappointed with any aspect of it. Of course we can win the game.

"I don't think many countries look forward to coming to play at Hampden so I don't see why we should be fearful of that."

The defeat to Georgia may have been difficult for armchair fans all over the country to watch but was even more painful for Lee McCulloch, who missed the crunch qualifier through suspension.

The Rangers midfielder, 29, will be back in contention for the visit of the Azzurri and, like Smith, is determined to remain optimistic.

"We've got to be," he said. "We've beaten France so there is no reason why we can't beat Italy.

"We have had some fantastic results, we have the momentum going.

"We have team spirit in the same way you would have at club level, everybody is together, and it's a game that the whole nation is looking forward to."

He added: "I watched the Georgia game in the house, I obviously wanted to be there and I was a little bit disappointed.

"I thought the boys were unlucky and it just sets us up for a massive game against Italy."