If we aren't desperate for money, I think he's worth a lot to keep around as a squad member. We have so many new players, attitude continuity is vital and Chester is a top pro.
If you take that out of it, £7-8m is great money for him. Last season he was horrible but injured, fair enough. But for me, he's only looked good next to Terry. He was average before Terry and poor after him. He's 4th or 5th choice now, and in theory, his value will be going down as opposed to up like all our other CB options.
If the offer/interest is real it's up to Smith to decide if he's of value just being around the squad. I think he might be actually.