Matteo believes supporters, who angrily branded Smith a 'traitor' for making a £7million switch to Manchester United seven years ago, should forgive and forget.
Matteo told the Mirror: "We all know Alan left to join Leeds' biggest rivals and a lot of Leeds fans were upset at the time. But I don't think you can blame him for doing what he did. As a footballer, when Manchester United come knocking you listen, and Alan did what was right for him and his family.
"It is only a short career and, at the end of the day, the fans should remember that when he was at Leeds he was totally committed - maybe even more committed than anybody else.
"I reckon he would be a great addition to the current squad. He is a Leeds lad and, if there is anywhere he would like to do well to round off his career, it is at Elland Road.
"In my opinion, he would give his right arm to play for Leeds again.
"His legs probably aren't what they used to be, but he is still capable of doing a helluva good job."