The England international's future at the north London club remains uncertain after he was dropped to the bench for the FA Cup semi-final defeat to Chelsea and the derby victory over Arsenal.
Mauricio Pochettino has already admitted that his employers will take a decision on Walker's future. He said, "I think I told you, all the players, we will decide which players will leave and which stay and who we sign."
"Club decision always, because I am Tottenham manager. It is not Mauricio Pochettino Football Club. That is very important to clarify. In three years, [it is] always the club's decision."
The former Southampton manager has identified Smith as his compatriot's replacement at Tottentham. Pochettino is an admirer of the right-back, who started his career with the capital club.
Smith came up through the ranks of Spurs' youth system. After being promoted to the first team in 2008, he failed to break into the starting XI. Lack of playing time forced him to go out on a loan spell before joining the Cherries on a permanent transfer in January 2014.
The Bournemouth defender has impressed with his performance and has five assists this season, the same number of assists as Walker. The duo are currently leading the race for most assists by a defender in the Premier League.
Should Walker decide to leave Tottenham, Spurs are likely to make an approach for Smith in the upcoming transfer window. Walker has already attracted interest from top clubs, including the Etihad outfit.
The Independent reports City's local rivals Manchester United and Barcelona are looking at the option of signing Walker. However, the Catalan club's focus remains on signing Arsenal's Hector Bellerin and that could leave the two Manchester clubs fighting for the Tottenham full-back. The same report also claims that potential suitors have to pay at least £35m ($45.3m) for 26-year-old Walker.