"Within New Zealand rugby and with players he worked with before coming overseas, he was always highly regarded," Smith told the Irish Independent.
"That filters back from players he has coached up here. He's a very good operator. He has a very good reputation."
Smith believes that Schmidt is now of the calibre where he wouldn't have to coach a Super Rugby side before getting the All Blacks job, and his overseas experience could follow in the mould of Hansen and former coach Graham Henry.
"Kiwis, we love to claim people from New Zealand, especially when they're successful, so we're well aware of him and it's helped by the fact our previous coaches have worked overseas - Graham Henry, Steve Hansen.
"It really helps if you've been over and experienced the way rugby is played and operates up here, it can only help your CV and your intel about the game, so I don't think that'd be much of an issue.
"He's well within the talks. He's doing great with Ireland. He's someone who could potentially come back and coach the All Blacks."