ATHENS - Nacho Novo's late strike earned Rangers a place in the last 16 of the UEFA Cup thanks to a dramatic away goals victory over Greek giants Panathinaikos, as the second leg clash in Athens ended in a draw.
Novo, guilty of wasteful finishing in last week's goalless stalemate at Ibrox, made amends by pouncing on a loose ball nine minutes from full-time to fire a precious away goal past Pana goalkeeper Mario Galinovic.
Ioannis Goumas had earlier given Panathinaikos the lead with the first goal in the tie in spectacular fashion with a thunderous 25-yard strike - and Rangers were far from impressive in what was a lethargic display from the SPL side.
But Smith's team remain in contention for four trophies this season. Four points clear at the SPL summit, Rangers are also in the CIS Cup final - against Dundee next month - and the Scottish Cup as well as the UEFA Cup.
Smith, who has usually preferred a 4-5-1 formation in Europe, signalled his attacking intentions by fielding Kris Boyd and Novo up front, while skipper Barry Ferguson's selection in midfield for his 76th European match meant he equalled David Narey's appearance record for Scottish players in competitions on the continent.
Peseiro made two changes from the side which laboured in Glasgow, bringing in former Tottenham striker Helder Postiga for Dame Ndoye while Portuguese midfielder Simao was replaced by set-piece specialist Andreas Ivanschitz, the man dubbed 'the Austrian David Beckham'.
The match began at a frantic tempo and it was Rangers who registered the first effort on goal when Boyd fired a pot shot from the edge of the penalty area just wide of the right post following a slip by Goumas.
The visitors were forced on the backfoot shortly afterwards when Sasa Papac brought down Georgios Karagounis to concede a free-kick in a dangerous right-wing position.
Ivanschitz drew a fine save from Allan McGregor with a stinging shot and Marcelos Mattos' shot was blocked as several Rangers players closed in.
The ball was not cleared though and Rangers found themselves a goal behind after 12 minutes courtesy of a superb effort from the most unlikely of sources, their 32-year-old centre-back.
Goumas then drew a fine save from McGregor with a fierce volley from the edge of the penalty area 10 minutes later.
The tie was still delicately balanced, though, with Rangers needing just one goal to level the match and take the advantage in the tie on the away goals rule.
The visitors were living dangerously again in the 34th minute when Postiga looked to be one-on-one with McGregor but defender David Weir recovered to block the Portuguese's shot with a superb last-ditch tackle.
Rangers almost got the goal they so desperately needed two minutes before the break through Novo, who was denied by a smart save by home keeper Mario Galinovic.
Ferguson, a peripheral figure in the first half, made an impressive run through the middle seven minutes after the break to release Charlie Adam, but the winger's poor cross which sailed out for a goal-kick largely summed up the visitors' efforts.
Boyd made a half-hearted claim for a penalty a minute later when he went tumbling under Nasief Morris' challenge but German referee Felix Brych was not convinced.
The Greens continued to look comfortable while Rangers continually struggled to build any attacking momentum.
With a goal desperately needed Smith brought on striker Steven Naismith for left-back Papac and Christian Dailly replaced Adam after 65 minutes.
But the hosts continued to threaten and McGregor was called on again minutes later to tip Loukas Vyntra's shot round the left post.
Just when it seemed Gers were dead and buried though, Novo struck.
Ferguson picked out Burke with a raking crossfield pass and the substitute sent over a dangerous low cross.
The ball bounced off the unfortunate Morris and landed at the feet of Novo - who slotted home into the bottom left corner from eight yards to send the pocket of 800 Rangers fans into frenzied celebrations.
