Chester, 32, has one year remaining on his five-year, $20 million contract that included $6.5 million guaranteed. He would have made a base salary of $3.5 million for the 2015 season.
According to OverTheCap.com, releasing Chester will free up $4 million in available cap space while creating $800,000 in dead money.
In 2014, Chester appeared in all 16 games for the Redskins. Pro Football Focus has him rated as the No. 33 guard out of 78 qualifying players.