WHEN WALTER Smith spoke to Sir Alex Ferguson on the phone on Wednesday morning he couldn't help thinking the managerial doyen sounded a little rough. The previous night Ferguson had reached the second European Cup final of his career and it didn't take a genius to work out he had been up into the wee hours marking the occasion. Two nights later Smith had something of his own to toast. Glasses of champagne were served on the Rangers' overnight flight back from their momentous Uefa Cup triumph in Florence and long before take-off Smith sensibly made arrangements for his son, Neil, to drive them home from Glasgow Airport. He had earned a glass or two of celebration.

The two old pals, Smith and Ferguson, a pair of Glaswegians in their 60s, stand together at the summit of European football this month. Smith had hoped to go to the European Cup final in Moscow, but Rangers' fixture congestion - they play the day before and the day after United's epic tie against Chelsea - will prevent him from doing so. It will be much simpler for Ferguson. He need only cross his adopted city a week on Wednesday to support Smith in the final against Zenit St Petersburg in the City of Manchester Stadium.

Ferguson wanted Smith to be his first assistant manager at Aberdeen in 1978, but could not prise him away from Dundee United. Eventually Smith did fill that role for Ferguson at both club and international level, for Scotland at the 1986 World Cup and at Manchester United in the final three months of the 2003-04 season.

There was a strain in their relationship when Smith lured Archie Knox away from Ferguson to become his own assistant at Rangers in 1991, but their friendship survived. In a candid interview at Rangers' hotel outside Florence last week, in which he discussed his own long-term intentions and Ally McCoist's managerial prospects, Smith revealed the role Ferguson played in his decision to return to Ibrox in January, 2007.

In the 16 months since then, the remarkable consistency and success of a reshaped team, the comparative youth and energy of McCoist, Kenny McDowall and the rest of his backroom team, plus the general vibe and atmosphere around the club have been invigorating for Smith. Rangers have been taken to the Uefa Cup final by a manager who seems fresher now than he did when he was sacked as a grey and beleaguered figure at Everton six years ago. A spell in charge of Scotland repaired his reputation and the return to Rangers has enhanced it and, with next week's final in Manchester, provided the highlight of his professional career. Smith has been good for Rangers, and the reverse is equally true.

He sparked a row by walking out on the Scotland job midway through the Euro 2008 qualifying campaign when Rangers needed a successor to Paul le Guen. The defection was swift, giving the impression that he regarded Rangers chairman Sir David Murray's approach as instantly irresistible. Actually there was enough doubt in his mind for him to place another phone call. He asked Ferguson whether he thought it would be a good idea to go back to Rangers nine years after his first spell at the club ground to a natural end. Ferguson was a natural source of advice.

"There is no manager I have greater admiration for than him," said Smith, who at 60 is younger than his friend by six years. "I can look at him and find a bit of inspiration in terms of carrying on. When the chairman asked me if I would like to come back to Rangers I phoned him to ask his advice because he's experienced all that, the period where he felt as though he was going to retire and announced it." Ferguson made it known that he would leave United at the end of the 2001-02 campaign only to change his mind. Since staying on he has added two more Premier League titles, an FA Cup and a League Cup, and now has a chance to add another European Cup to the one he won with United nine years ago.

Ferguson was roughly Smith's age when he contemplated retiring; Smith's concern was whether to leave a cosy job with Scotland for the treadmill of club management at Rangers. Should he risk his reputation as a hugely-successful manager for the club by returning when its financial muscle was greatly reduced.

"Fergie said you shouldn't let anything put you off, you should go and do it. He didn't hesitate when I phoned. He told me right away that I should go back into club football again. He felt the day-to-day involvement was a vital part of football. He felt that if you've got a lot to offer you should do it on a daily basis rather than at international level. I took that on board.

"I phoned to get his advice and there was no hesitation in his answers. The point he made was the fact that you can get back into an environment where you can win on a regular basis. The Scotland thing is something you can take a great deal of satisfaction from, but your opportunities to win are going to be minimal. He felt that the aspect of going and winning again was a big thing. He was right."

Smith's second spell at Rangers has been endlessly satisfying for the club so far, but he has suffered a handful of setbacks - such as losing to Stuttgart and Lyon in the Champions League and twice against Celtic at Parkhead last month - which he found surprisingly hard to deal with.

"The one thing I have noticed is that the disappointments get greater as you get older. You tend to be far more optimistic when you're younger. So the defeats now are, if anything, harder to take than they were a few years ago. When you're younger you think, Next year we'll be back there and we'll go and do that'. Now, because of the age you're at, you say to yourself that if you take too many disappointments you're not going to get another job. If I was in my mid-forties I'd think I'd have another reasonable opportunity, but now I know that's limited. While I said that I feel the defeats more, I do take a great deal more out of winning games.

"If supporters are unhappy then normally a manager leaves. I mentioned that in a newspaper article before and it was interpreted as a threat to critical Rangers supporters. But in my situation, that's how it would be. Hopefully it won't come to that. If I'm enjoying it and the team are successful then I will be doing it for a few years yet. It's surprised me a wee bit how well the team have done in the first year which makes it a little bit more enjoyable than if we were toiling. I will stay here for as long as I'm enjoying doing it and for as long as the team are doing well. If the team are not doing well, then you normally don't get a choice."

There is a notion that when the time comes for Smith to move on - whether things sour and he is dismissed, or sees out the remaining two years of his contact, or stays even beyond that - Rangers already have his successor on the premises. The widespread assumption is that McCoist, 45, who lacks managerial experience but otherwise possesses an impressive array of credentials, will take over if Smith leaves or moves to an "upstairs" role.

"I think people look from the outside and see it as an obvious thing to happen. I don't blame anyone for looking at that but I stress to you that Alistair was brought in to be my assistant manager and for no other reason. I came back to be the manager. It's always interesting when I hear that I'm going to leave... Different from the last time when it was about getting sacked...

"No, there is no intention of Alistair taking over. Personally if I finished and he got the job I would be delighted, but I have no plans for anything like that and it has never been mentioned. I brought Alistair in because of what he can bring to the group while I was the manager and that is the way it will be. Results and other things will determine just how long we all last."

There will be another couple of intriguing phone calls between Smith and his old mate before the month is out.