It is understood Smith has been receptive to the early discussions but will not allow the quality of his squad to erode further after two inactive transfer windows.
Alastair Johnston, the new chairman, revealed during his public inauguration yesterday that negotiations had begun to extend the stay of the 61-year-old, whose contract expires in January.
It is understood Smith has been receptive to the early discussions but will not allow the quality of his squad to erode further after two inactive transfer windows.