Walter also took the oppotunity to deny claims that he is to get £1m compensation. Smith told the Liverpool Echo: "We have not discussed compensation. I don't know where those stories have come from.
"I am very disappointed with the way things have turned out.
"I wish everyone at the club the best of luck for the rest of the season and for future years too. There's not much more I can say."
Everton deputy chairman Bill Kenwright claimed the decision to sack Smith "had not been taken lightly".
"Walter Smith was, and is, one of the most honest and honourable men in football," he said in the same newspaper.
"He brought a stability and dignity to Everton when it desperately needed it most.
"Obviously today's decision was not taken lightly, but it was felt it was in the best interests of the club as it battles to preserve it's Premiership status."