The Croatian has been out of action since early October with an ankle ligament damage.
Smith told Blues News: “He had the operation on the ankle ligaments in Croatia and has been doing the rehabilitation with the specialist who did the operation.
“They are pleased with everything that’s happening and he’s working extremely hard.
“We had been hopeful of getting him back by the start of January and they are optimistic it might be a couple of weeks earlier than that but we will just have to wait and see.”