Jason parts company with Town as he looks for first-team football elsewhere
The 33-year-old striker signed a new one year deal in the summer but has only featured once, as a substitute, since Mick McCarthy took over as manager at Portman Road at the start of November.
Scotland joined Town from Wigan in 2010 and went on to make 95 appearances, scoring 21 goals along the way.
“I’d like to thank Jason for his services to Ipswich Town Football Club and wish him every success for the future,” said Town chief executive, Simon Clegg.
Mick added: “Jason is a fantastic guy and has been great around the training ground but we are going younger and he’s been missing out.
“He understands that and wants to go out and play football at the twilight of his career. We wish him well.”