Carlos Carvalhal's side are currently fifth in the Championship table.
Carlos Carvalhal's side currently sit fifth in the table, having won seven of their last 10 league games. And Smith believes that his old club should be right in the promotion picture come the end of the campaign.
"I think they've got a really good chance of finishing in the top-six with the quality they have got," he told the Star.
"The fan base and support they have behind them only helps that."
Smith - who played 55 times in the league for Wednesday between 2003 and 2004 - will have a better idea than most of what the current Owls squad is capable of. His Brentford side were thrashed 4-0 by Carvalhal's men on Saturday, which has left their own slim hopes of sneaking into the top six in serious doubt.
And while he will have been able to put any sentimentality to one side when he took the Bees to Hillsborough, the 44-year-old will surely take a lot of satisfaction from seeing Wednesday move into contention to earn a place in the Premier League.
The Owls were relegated from the second tier during his first season with the club, and narrowly avoided another relegation in his second campaign, so he will have a good idea of how much it will mean to the supporters if they are able to end their long wait to return to the top flight.