The Glasgow giants have announced the appointment of their legendary ex-manager, who left the hotseat in May 2011, to the board as a non-executive director
The Glasgow club have been in a state of crisis since entering into administration in February which was subsequently followed by their liquidation and reformation as a NewCo, before then being relegated to the Scottish Third Division.
However, Ally McCoist's Gers' are currently leading the division and Smith's return to the club he managed to 10 Scottish Premier League titles, five Scottish Cup victories, six League Cup victories as well as a Uefa Cup final in two separate spells as manager should help boost the feel-good factor around the club.
"It is a great privilege to serve the club that means so much to me in the capacity of non-executive director," the 64-year-old told the official Rangers club website.
"Serious constructive efforts are being made to rebuild Rangers after a very difficult period in the club’s history and if I can play a part helping that process, I am willing to do so.
"Apart from being a former manager of the club, I am first and foremost a supporter and am no different from the many thousands of other Rangers fans who have shown they’re willing to do what they can to ensure Rangers rises again."
However, Smith, who retired from management after leaving Rangers in 2011, refuted suggestions that his appointment, along with Glasgow-based businessman Ian Hart, would impact on his former assistant McCoist's management of the first-team in any shape or form.
He added: "I must make it clear, however, that I will not be playing any role in the day-to-day running of the Club or the team.
"It’s the manager’s job to run the team and the chief executive’s job to run the club’s affairs. The role I will fulfil is to bring my experience of Rangers and football in general to the board table and that is what I will do."
McCoist himself went on to speak of his "delight" that his former mentor had returned to Rangers and welcomed the move by the club's owners.
He said: "I am delighted to see Walter involved in the club again. He brings tremendous experience, he has done it all and is a Rangers man through and through.
"His presence will be a huge benefit to the club. I also support Ian’s appointment to the board as he has done a lot for the youth squad over the years."
The club's owners Charles Green and Malcom Murray also believed the return of Smith, as well as the arrival of Hart, would "ensure the highest standards of ethics and governance are maintained."
"As head of the executive team at the club, it is extremely important to have a board that has the respect of investors and Rangers supporters," Green said.
"The consortium I led to buy the club are not Rangers people but there could be none better than Walter and Ian to fill that void and we are delighted they have agreed to become non-executive directors to broaden the skills and qualifications of the board."