'Yes, his feelings are special for this club, but he's the kind who will give 100 per cent to any job he's doing. That's exceptional in the modern game, but Alan only knows one way to play.
'Eddie Gray has worked with him to help curb what was seen as his temper problem. He has been terrific - he has learned to keep control of his emotions, and I'd say become a better player for it.'
While Manchester United, Liverpool and Valencia could all raise Birmingham's opening bid of £5.75m plus add-ons, Newcastle - strong favourites to land Smith since January - hoped to pay as little as £4m.
Lorimer stressed there has been no decision by the club on Smith's future, despite the appointment of agent Phillip Morrison to handle Leeds' end of what is certain to be a busy summer transfer window.
He admitted: 'We're on the verge. We need a lot to happen for us, but you have to believe. If we stay up, we'd want to build a team around Alan. If we go down, I think he has made his mind up already.
'Nobody is chasing him out. But unless we're in the Premiership, we can't afford to pay big wages any more. Common sense and reality come into it.'
Lorimer, who scored 168 League goals in two spells with Leeds after making his debut at 15, insists the club are better equipped to bounce back from relegation than the last time they went down in 1982.
He added: 'My old team-mate Allan Clarke says Leeds might take five years to get back up, but I disagree. The structure of the club is much better now, with an academy, four England Under 21 players and good lads behind them.
'Some players on massive wages will have to go - the reality is that you just can't keep on burning money, paying wages more in tune with Champions League status. That was three years ago.
'But with no disrespect to them, Norwich, West Bromwich and Wigan are ordinary teams, and the players who are left here next season will certainly be too good for the Nationwide.
'One or two good players will be sold, but I'd be very disappointed if we couldn't put a side together straight away who would be knocking on the door to come straight back up.'