Smith, who returned to the Ibrox club in the summer, has been kept out of the Gers team by Wallace during the 2013/14 season.
But he can understand why Light Blues manager Ally McCoist has decided to play the 26-year-old ahead of him.
And he thinks national manager Strachan should make the full-back a starter when his team launch their bid to reach France in two years' time.
Smith said: "I am surprised Lee hasn't started for Scotland this season the way he has been playing. He has deserved it because of the hard work he has put in.
"Every week since I have been here he has been our best player.
"We have had players scoring hat-tricks and what have you but, for me, he is our most consistent player.
"I hope he gets his place in the Scotland side soon."