If we can get rid of him and not have to pay anything towards his wages I'd let him go for free to get him off the wage bill and away from the club. Might encourage someone he's worth a punt if he costs nothing apart from wages.
....I can't see many clubs being able to pay that level of wages even if he's on a free, I suspect Everton would have to give him a significant sweetener to get him off the books. It's all good and well folk say get rid of dead wood but it's mighty difficult to move these fellas on.