Eade comes out of contract at the end of this season after seven years at Whitten Oval, where he has delivered three consecutive preliminary final berths.
Smorgon said while Eade's future beyond this year wasn't necessarily dependant on how the Dogs figured in the season proper, the club was in no hurry to negotiate new terms, which was an agreement both parties were comfortable with.
"Rodney knows, and we all know, we've played in three preliminary finals and we've been a very consistent finals performer but Rodney needs a premiership on his CV and we need one around our club," he told 3AW on Tuesday night.
"We need a flag flying again.
"We don't shy away from that and all the players are aware that finishing third or fourth is wonderful but it's not what we want."
Smorgon wouldn't elaborate on a time frame to complete negotiations regarding whether Eade would enter into an eighth year at the club.
"We're going to do it when Rodney and us work it out as to when it's appropriate and what we'll do," he said.
"We won't be changing our view on that. Every club has got the right and every coach has their right to do it their way.
"Rodney spoke about this two or three weeks ago and he's very happy with where he is and he knows what he has to concentrate on.
"We all know what we have to do at the Bulldogs and we're focusing on this year and the rest will take care of itself."
He also indicated the Dogs were not interested in the method adopted by Adelaide, which saw the club put coach Neil Craig on permanent staff on Monday.
"It's very innovative and obviously Neil is a man of different talents," he said.
"I think you look at every situation on its merits. Whether that's applicable for others, well, it's not for every club and the individual but it's certainly a creative and innovative idea and let's hope it works for Neil and Adelaide's sake."
Meanwhile, as sacked Brisbane Lion Brendan Fevola set about training with VFL side the Casey Scorpions in Cranbourne, his manager revealed the Bulldogs intervened when their affiliate of Williamstown expressed interest in recruiting the dual Coleman medallist.
"He was also at one stage keen to have a chat with Williamstown but the Western Bulldogs stepped in and said we don't think it's appropriate," Peter Blucher told 3AW.
"We accepted that and chose not to take it any further. That's their prerogative, just as it's the Casey Scorpions' prerogative to say we understand and appreciate Melbourne's position."
Melbourne, who is affiliated with the Scorpions, has expressed its disappointment with the VFL side for allowing Fevola to train with it in the hope of securing a spot on the list.
Blucher also said Fevola was yet to sign a contract with the Scorpions.
