Rangers face the high-flying Spaniards after recording three straight goalless draws in the Scottish Premier League and Smith knows that his side face a tough task.
He said: 'They have been very steady the last few seasons and they have a good squad. I would consider them to be favourites for our group.
'It will be a difficult game for us but we are always hopeful that we can get a win in a home match.'
Rangers are waiting on the fitness of Steven Davis, who was a late withdrawal from the Aberdeen clash at the weekend following a bout of flu.
Left-back Sasa Papac is a doubt to play as he recovers from a hamstring strain and if the 29-year-old fails to recover then Steven Smith will deputise again.
Smith himself picked up a hip injury against the Dons at the weekend, but will be fit to stand in for Papac if necessary, although striker Kyle Lafferty remains sidelined.
Sevilla manager Manuel Jimenez is likely to ring the changes to his starting XI after resting a number of key personnel in their weekend win.
Luis Fabiano should be restored by Jimenez and he will partner either former Tottenham hitman Fredi Kanoute or Alvaro Negredo up front.
Midfielder Didier Zokora could be recalled in place of Lolo while left winger Diego Capel should keep his place in the side as Diego Perotti has not travelled after picking up an Achilles injury.
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