Town have released Spanish full-back Sito after three years with the club. The 27-year-old made 51 starts and 12 sub appearances for the Blues, scoring one goal, having joined on a free transfer from Racing Club de Ferrol in 2005 after a trial.
A recent report claimed the La Coruña-born defender had been offered a new contract but boss Jim Magilton told the club site that he would not be kept on now that his existing deal had expired: "We have told Sito that we will not be offering him a new deal.
"He is a fantastic lad and I'd like to thank him for his contribution to this football club and we wish him every success in the future. We will do everything we can to help find him a new club."
Sito found it hard to seal a regular place in the Town side throughout his time at Portman Road and was interesting Sheffield Wednesday and Norwich City during the January transfer window.
Magilton has also paid tribute to Fabian Wilnis and Sylvain Legwinski, who are also leaving the club this summer: "Fab and Sylvain have been great players for this club and they will be missed around the dressing room.â€Â