If Champions League football is to be savoured again by Gerard Houllier's men, Smith feels that Anfield must regain the 'aura of invincibility' that once made it so famous.
Smith said: "That aura of invincibility is something that the Reds have not been able to count on regularly over the past decade and, as a result, expectations have fallen well short of requirements.
"Phil Thompson's view that the club must rediscover the ability to win games consistently at Anfield is a correct one.
"Our two great rivals from Highbury and Old Trafford have become the teams most difficult to beat on their home grounds and we must try to develop that Anfield fear factor once more.
"That has to come through a style of play - one where we have the players who can attack and hurt defences.
"We must attack more in numbers. We have relied on Michael Owen too much in the past. Goals, and lots more, must come from other places.
"Gerard Houllier's links with Damien Duff and Harry Kewell indicate to me a different approach for the new season. It is to be hoped at least one of them becomes an Anfield player.
"If Liverpool want to mount a challenge to Arsenal and United next season, the line-up must comprise players of high class, speed, plenty of creation and plenty of goals - a mixture of what Liverpool have been in the past."
