Schmeichel is convinced Eriksson is happy to stay with the cash-strapped club.
A regular visitor to Notts County games to watch goalkeeping son Kasper in action, Schmeichel told the Sunday Express: "For someone like Sven, who has been in the top jobs everywhere in the world, this is one of the nicest challenges he has ever had.
"He has got to do more than just pick 11 players. He is totally dedicated.
"The challenge is trying to raise money for the club - trying to save it, if you like. If he pulls it off it will be an incredible achievement.
"There has not been any unrest among players. Sven has managed to calm everything down. Sometimes the club has been late paying wages. They are in court soon.
"Even allowing for that, everyone has seen against Wigan what they are capable of even though finances have seen them say goodbye to a few players. They are still up there and that's down to Sven."