The Scottish FA are determined to hold onto Birmingham City target Alex McLeish.
"When it comes right down to it you have a scenario where the manager says, 'I'm going, there's nothing you can do about it,' and then you have to get into negotiations with the club.
"But we don't want that to happen.
"We are turning it down, we're saying we don't want Alex McLeish to go anywhere."
McLeish's contract runs until the 2010 World Cup, and if the SFA do lose their man they would stand to receive substantial compensation.
Smith insists no clubs have approached the SFA.
"I hope it stays that way," he said. "They are unwelcome requests so we will be turning down any requests we get for Alex."