The former forward believes the quality of his finishing relies solely on his confidence.
Manager Arsene Wenger has used Walcott in a centre forward role so far this season, a position the player has been keen to start in for some time.
He has largely impressed as well despite having played on the wing for the majority of his career, with his latest goal being the equaliser against Leicester City in Saturday’s 5-2 win.
Many have questioned whether he is good enough to play that role for the side; an Smith says he must continue to learn the intricacies of the position if he is to be a regular in there.
“Walcott's the real story from that win," he told Sky Sports.
“What he needs is a run in the side to be able to learn the intricacies of the position, the runs to make, the hold-up play. It seems Arsene Wenger is willing to give him that.”
Walcott finishing is down to his confidence
A big question mark over Walcott’s ability has been whether his finishing is good enough to be the main choice striker for the Gunners.
He has already missed a number of good opportunities this season to suggest that may be the case. He has though, taken his goals well when called upon, the one against the Foxes being a prime example of his abilities.
And Smith says it just comes down to confidence with Walcott, but the signs are encouraging.
"It comes down to confidence with his finishing," he added.
“You need to have the faith of your manager and the confidence to go out there and be nice and relaxed when you do get chances. It seems that he's getting towards that point now which is very encouraging."