Keeper Scott Loach has joined Championship new boys Rotherham United on a two-year deal after his contract with Town was cancelled by mutual consent. Boss Mick McCarthy had previously made the 26-year-old available for transfer with his opportunities having been limited during 2013/14.
Loach, a Blues supporter and academy schoolboy as a youngster, returned to Town in the summer of 2012, joining from Watford for a fee of £150,000 and signing a contract which was due to run until the summer of 2015.
He made 32 starts and one sub appearance but never firmly established himself at Portman Road.
"My time at the club is over but I just want to thank everyone for making me feel welcome here,” the former England U21 international told the club site.
"I’ve always had a great reception from the fans and I think the club is a credit to itself. The people at the club and the fans who support Ipswich all deserve a big future and I hope they get just that.”
A Town spokesman added: "The club would like to thank Scott for all his efforts in a Town shirt and we wish him well for the future."
Rotherham boss Steve Evans told the Millers' official site: "Scott has made over 150 starts for Watford in the Championship so he has great experience at this level.
"He has played under the likes of the excellent Malky Mackay and Brendan Rodgers and they are two individuals who know a player when they see one.
"He has just turned 26 so he is at a good age; he has previously been called up to the England senior squad and has been capped repeatedly at U21 level.
"He has great stature, he kicks well, he has all the attributes that a top keeper needs and he fits in perfectly to what we are looking for.”
He added: "Similar to Matt Derbyshire and Conor Newton we are signing a player who is still young, still has a point to prove and is hungry for success.
"He had a dream move to Ipswich, his boyhood club, for a sizeable undisclosed fee but it hasn’t quite worked out as he would have wished.
"We are delighted to sign Scott, like our other signings, he has a fantastic pedigree and he wants to help take this club and his career forward.
"I talked to him purely on football terms and the discussions were very straightforward. He wants to come in and grab the number one shirt and he is under no illusions to how tough that will be.
"Both our keepers will know that come August 9th I will pick the person that we genuinely believe deserves the shirt, there can be no other way.”
Meanwhile, former Yeovil central defender Byron Webster, who has been linked with the Blues amongst others this summer, is reported to be close to joining Millwall.
The Blues watched Webster and his former Glovers team-mate Luke Ayling in action last season with the latter understood to be of greater interest.
Right-back Ayling is, like Webster, out of contract but as he's only 22 Yeovil would be entitled to compensation, however, manager Gary Johnson says no club has so far been in contact to make an offer.