Jaime Peters has left Ipswich by mutual consent having struggled for first-team action over the past 12 months.
The versatile right-back, a Canada international, joined Town in 2005 and made a total of 114 appearances, but only one of those came last season under manager Paul Jewell and he 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," Jewell said.
"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, 25, had one year remaining on his Ipswich contract.
He said: "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."