The Ibrox club announced on Sunday that the 73-year-old was in hospital following an operation.
And current Light Blues boss Gerrard said: "I've already sent my best wishes to Walter's family.
"Everyone at the club wishes Walter well. He still plays a massive part at this club, he's an iconic figure.
"He's someone I've got a close relationship with. I was only on a zoom call with him days before he went into the hospital.
"So everyone is right behind Walter, wishing him well and hopefully he will be out of hospital before too long."
Gerrard has previously spoken of his close ties to Smith and the influence he has had on his management at Ibrox.
The current manager recently passed Smith’s impressive tally of victories in European competition with wins over Royal Antwerp in the Europa League.