Smith has backed Webster to play a significant role at Ibrox when he returns from his loan spell at Dundee United.
"It's a reflection of how the people up there view him and the reason I let him go elsewhere was because he was going through a terrible injury period here.
"He wasn't settling down but I'm hoping the confidence he gets from going out on loan and playing can kick-start his career when he comes back to us next season."
Smith, who is working without a contract as the club push on with takeover talks with a consortium headed by London-based estate agent Andrew Ellis, added: "I'm not sure of what future any of us will have here but I think putting him out to United has worked well for him.
"He had a hard period here where, due to contractual situations and his transfer from Hearts to Wigan, he stalled a bit.
"He had a terrific start to his career but it hit the skids when that happened to him and he was unfortunate when he came here and played just once in two-and-a-half years.
"If my memory serves me correctly, he scored in that one against Gretna but injuries limited him a lot. I think he's over that now.
"I certainly hope he is and I like to think he can come back with the confidence he had three or four years ago."