Scotland boss keeping tabs on Hearts
Jambos skipper Steven Pressley was dropped from the squad that was held to a 1-1 draw by Falkirk on Monday evening.
Rumours suggest that Pressley - who alongside fellow Scotland internationals Craig Gordon and Paul Hartley revealed 'significant unrest' in the Tynecastle dressing room in a statement earlier in the month - was poised to be stripped of the captaincy by outspoken majority shareholder Vladimir Romanov.
And Smith has admitted he is keeping close tabs on developments at the troubled Edinburgh club.
"What is happening at Hearts is something we will have to monitor," said the Scotland chief.
"What has happened to Steven is difficult to comment on. But it would be disappointing if he was left out because of the statement he made to the press about the club.
"He did that in the best interests of Hearts."