Hendry left Celtic to join Belgian outfit Oostende on loan last summer and has had a brilliant season in the Belgian top flight.
His performances at the heart of Oostende’s defence earned him the Player of the Year accolade at the club and also earned him a recall to the Scotland squad.
Provan feels Hendry’s performances have given Scotland manager Steve Clarke one more good option at the back ahead of this summer’s European Championship.
But the Bhoys legend feels that Celtic must be absolutely kicking themselves for allowing Oostende an option to buy the defender for just £2m.
He indicated that Celtic would have earned a lot more if they wanted to sell him on the open market this summer.
The Celtic legend said on The Go Radio Football Show: “The one bonus for him in this situation is the emergence of Jack Hendry who can take the ball out from the back and play a pass as well.
“I think I am right in saying that he has been voted the Player of the Season [at KV Oostende].
“He’s had a terrific season.
“Celtic will be kicking themselves that there is a £2m purchase option in that loan contract.
“He is already worth a lot more than £2m.”
Oostende are expected to take up the option to sign Hendry on a permanent deal in the summer if they can raise the funds needed.