The ongoing search for a new owner at Ibrox has cast doubt on Smith's future at the club, but McGhee believes that if the conditions are right then he he will stay on to have another go at the Champions League next season.
"You would imagine that if people there made Walter feel wanted then he will find it difficult to leave," he said.
"He loves the job, the Champions League looks like coming next season and he will want backed in that.
"He will need a decent team for the qualifying stages of the Champions League, but if he gets all of that then I don't see any reason why he won't be there."
This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.