Midfielder Colin Healy’s Town contract has been terminated by mutual consent. The 31-year-old joined the Blues from Cork City in the summer of 2009 for £70,000 but never really established himself at Portman Road, despite signing a one-year contract extension in the close season.
Boss Paul Jewell said: "Colin is a terrific pro but he's not had the first team football he was looking for this season.
"Agreeing to bring his contract to an end early gives him the opportunity to find himself a new club for the rest of the season and we wish him the best of luck."
Healy, who made 19 starts and 10 sub appearances for Town, scoring twice, made his only league appearance of the season in the recent 3-2 defeat to Doncaster in which he was substituted during the first half.
The former Ireland international subsequently made his frustrations known to Jewell and was left out of the 16 at Nottingham Forest.