Smith says a European league would be good for the whole of Scottish football
Rangers manager Walter Smith says ambitious Scottish clubs must be able to join a European league to prevent their football suffering a slow death.
Celtic and Rangers representatives have maintained a stance that the Glasgow duo would prefer to leave Scotland for England or a European league.
But he believes that it ought to be open to other Scottish clubs.
"I think, if we don't leave the SPL, the profile of Scottish football is in danger of dying," said Smith.
"I feel that a European league can offer a situation for all clubs, not just for Rangers and Celtic.
"But that would mean that they would need to show a level of ambition to get to that level.
Both Rangers and Celtic need owners to subsidise the team and, in any business, that's not healthy
Walter Smith
"Currently, nobody is prepared to invest in Scottish football. If you are a businessman, why would you take a chance for no great reward?
"But if there was an opportunity to get into a European league then maybe it would be worthwhile."
The proposed Atlantic League could also potentially feature clubs from Sweden, Denmark, Belgium and Netherlands.
However, critics of the idea fear it could be fatal for Scottish league football should the Old Firm clubs no longer be part of the setup.
Smith disagrees and pointed towards the decline in the ability of Celtic and Rangers to compete on the European scene, in particular against clubs from England, both financially and on the pitch.
"There are big, big clubs in smaller countries who are finding it very difficult to compete in European terms," he said.
"Television companies are not prepared to throw money at us like they do for bigger countries.
"A few years ago, we were losing players to the Premiership. Now it's the Championship.
"There are 60-odd Scottish players playing in the Championship in England when they should be playing in Scotland.
"If there is no European league, we will continue to play football in Scotland as we have some great clubs, but it's quality will diminish."
The Dutch FA has denied claims that it will be lobbying governing body Uefa for a European league, while Feyenoord have dismissed suggestions that they are one of the clubs in favour.
However, Smith remains certain that the proposal will gather momentum and insisted that it would not necessarily mean that the Old Firm could abandon Scotland altogether.
"It would seem to be a natural progression," he said.
"I don't think there is any doubt that, at some stage in the future, it will happen - it is just how it will happen."
He added, however, that the Old Firm would seek to keep a presence in Scottish football if they did indeed join a European league.
"Rangers and Celtic would still field teams in Scotland even if they left to join a European league," said Smith.
"They might have to start at the bottom division and work their way up again, but they will always have a presence in Scottish football.
"Scottish football will survive without the Old Firm.
"Other teams will have the opportunity to be successful. Rangers and Celtic leaving to join a European league does not exclude the possibility that other Scottish teams could get there."
The proposal to create a two-tier Premier League in England will be raised again at a league meeting in November, with Bolton chairman Phil Gartside the driving force.
However, Smith believes that the chances of English top-flight teams accepting the Old Firm into a proposed second division of the English Premier is remote.
"I don't see that a league would ever vote for two teams that are going to be bigger than the majority of teams that are in it." said the Rangers manager.
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