The Liverpool striker will be key according to the former striker.
England take on Iceland in their Euro 2016 last 16 clash on Monday after securing their progression from Group B.
They are expected to be frustrated against their opponents, who many have predicted will follow the example set by Slovakia who defended deep to earn a point against the Three Lions in the final group game.
England’s hopes will firmly rest on the work that their strikers can do and Smith has backed Sturridge to play a big part in the clash.
"I think somebody like Daniel Sturridge will play a big part,” he told Sky Sports.
“Somebody that can just drift into areas, see a pass, do something different and give us that little spark, because we don't need to go toe to toe with them.”
While Smith believes Sturridge will play a big part for England on Monday, his performance will be heavily reliant on the midfield producing the goods.
The Three Lions strikers have found chances hard to come by in the group stages as the likes of Wayne Rooney, Dele Alli and Adam Lallana have struggled to create enough clear-cut chances.
They will need to up their game if England are to progress in the tournament and the Iceland clash will likely be determined by the performance they put in.