Wrexham exited 18 months of administration at the start of 2006–07, and started the season with an eight-match unbeaten run, including a 4–1 win over Championship club Sheffield Wednesday in the League Cup. However, a 5–0 defeat at Accrington Stanley triggered a run of bad results that Smith was unable to turn around. With Wrexham hovering above the relegation zone in 18th place, Smith was dismissed on 11 January 2007. He is one of only 24 people to have managed over 1,000 professional matches in English football.