Town have parted company with Jaime Peters by mutual consent.
The Canada international made only one appearance in the first-team last season, the Carling Cup defeat by Northampton and spent two months on loan at Bournemouth.
“Jaime is a terrific lad but it’s not really worked out for him here since I’ve been here,” Town boss Paul Jewell told the Club website.
“We have a lot of options in the wide areas and he’s not had a look in at first-team level, so it’s best if he moves on because the lad needs to be playing football.
“We wish him every success and I’m sure he will get fixed up with another club.”
Peters, who had a year left on his contrat at Portman Road, made 114 appearances for Town, scoring four goals after arriving at the Club in 2005.
“I’d like to wish Ipswich Town all the best for the future,” the 25-year-old told the Club website.
“I have some good memories from my time at the Club and always enjoyed a good relationship with the supporters but it’s important at this stage of my career that I’m playing football so it’s best if I move on.”