The Celtic striker has been linked with a move to Stamford Bridge with the Scottish champions reportedly wanting £40m for the French starlet.
And Alan Smith believes Dembele would be a useful man to have at Chelsea as Antonio Conte’s side look to win the Premier League.
He told Sky Sports: “What he’s shown at Celtic over the last few months would suggest he could possibly make the step up, he’s still very young but he’s done well in the Champions League which is a very encouraging factor.
“These last few months you might just need someone like him”
“To think that everyone looked at him and Fulham but none of the big boys went, I won’t say put their money where their mouth is, because Celtic paid a nominal fee didn’t they?
“If they were to get £40m now that is some profit margin.”
And when asked if Dembele would be loaned out if he joins the Blues, Smith suggested Dembele would learn more by staying and working alongside Costa.
He added: “We were just saying would he put back out on loan? I’d be surprised if that was the case.
“These last few months you might just need someone like him, whether it is coming off the bench for the last 10 minutes.
“Batshuayi doesn’t look like he’s impressed the manager an awful lot up until now.
“If you want to learn from a centre-forward, I know Dembele is slightly different, but there aren’t many better than Diego Costa for the way he plays, the movement, his hold-up play, he’s an all-round fine centre-forward.”
Chelsea return to Premier League action tonight when they travel to Liverpool looking to extend their lead at the top of the table.