Bootle-born Carragher, of course, has seen off threats to his Liverpool place in the past and Smith feels he can do so again this season.
Smith said: "Carragher was one of the club's most consistent players last season and being called up for England underlines that fact.
"Jamie Carragher can operate at left back, in central defence or even in midfield, so I feel he will still have a key role to play.
"Steve Finnan's arrival will strengthen the Liverpool defence. I did not think he was outstanding for Fulham at Anfield, but if he gets his head down and works hard he will force his way into the side, but that certainly does not mean the end for Jamie Carragher."