Smith said: "He's played extremely well and obviously we're delighted to think his form at club level and international level has been fantastic.
"He's been a big, big bonus to us and he deserves a great deal of credit for the effort he has put in, in the months since the start of the season."
Smith has little time for rumour but accepts clubs will probably be watching Hutton.
"It makes me quite happy if that's the case," he said.
"We can't have anything to do with speculation. But obviously if the player is doing really well it's a benefit to the team, and if he attracts the attention of other teams then fine.
"As long as he keeps playing well for Rangers we'll have no problem with that.
"I don't think we need to put any value on him. He's doing well and if we had other players that were doing exceptionally well and other teams were interested in taking them, then fine - as long as they play exceptionally well for Rangers which Alan is doing at the present moment."