The Scottish champions had hoped to claim three points from their final Group G match at Sevilla but were denied the opportunity to end a disappointing season in Europe with a win as Frederic Kanoute grabbed the only goal of the game from the penalty spot.

Rangers knew even a Europa League spot was not at stake before heading into the clash in Spain, while rivals Celtic are also without European football after Christmas regardless of the result of their meeting with Rapid Vienna next week.

Reflecting on a tough campaign, Smith conceded the gap between Scottish clubs and the top teams on the continent is as big as ever.

He said: "That's going to be the case, it's going to be a difficult period for Scottish clubs in terms of qualifying for the Champions League, the co-efficient is getting harder every year.

"It's an unforgiving tournament. If you are not at the top of your game you can suffer as we have done at home.

"Everyone knows the standards you need to achieve. We have let ourselves down a little with our home form. Away games have been okay, but the home games have been disappointing."

Kanoute netted with just eight minutes on the clock and Smith feared Rangers could be set to suffer another heavy defeat after slumping to a 4-1 loss to the Spaniards in their first meeting at Ibrox.

He said: "It was a difficult evening for us, Sevilla are the best team in section and we had to work hard. After they got their goal it was always going to be an uphill battle for us.

"You are always concerned when you start like that, we gave up a couple of easy opportunities at the start of the game.

"The penalty was a poor one to give away and it looked like being an awkward evening for us but credit to the boys, they worked hard, especially the midfield players, to make sure we didn't lose many.

"That was a plus for us. There haven't been that many in the Champions League but we worked hard tonight.

"For us it was important that we didn't lose in the manner we did at home. Those results affected us a little in terms of our overall confidence.

"If we had played at home like we did away we would at least have been better placed for a Europa League place."

Smith now believes the group winners have the potential to go all the way in the Champions League - if the draw for the last 16 is kind to them.

He said: "It's an extremely difficult competition to win but they have shown they are up there with the top teams. They have a good chance and they have good players and if they get some luck in the draw they have an opportunity."

Sevilla boss Manolo Jimenez said: "Sevilla have qualified again among the 16 best teams in Europe. It was a difficult match against a team who only had pride to play for and they didn't have a shot at goal until 82 minutes. I am happy.

"Rangers played a lot of men in the middle, and it was difficult to find space. I thought Rangers might have been a bit more daring as they didn't have anything to play for. As I said, it was a difficult match."

When it was pointed out that the Spaniards had 25 shots at goal but scored only once, from a penalty, he added: "We've got to be happy with a victory.

"We created chances, as we have been doing. We have an important match this weekend against Sporting Gijon and the idea was to keep some players in reserve for that."