The full-back came through the Gers' academy system before leaving for Norwich City in 2010.
He struggled to make an impact at Carrow Road and ended up taking his career in a different direction by linking up with MLS outfit the Portland Timbers.
Smith left the American side in December and has spent time training with Rangers in an effort to keep his fitness levels up.
Gers boss Ally McCoist is hoping to bring fresh faces into his ranks this summer and Durrant thinks they could do a lot worse than offer a deal to Smith.
He said in the Daily Record: "Steven has been talked about but it will be down to the manager to make a final decision.
"He came in and trained during the last month of the season and he was great about the place as he knows what it's all about to play for Rangers.
"If we can get him, he would be a great addition."