Striker Paul Taylor’s Town contract has been terminated by mutual consent.
Manager Mick McCarthy confirmed: "Paul Taylor’s not our player. He’s not been back with us and he’s not my player.”
The 27-year-old, who has been training with Blackburn for the last month, is understood to still be registered to the Blues and will stay officially a Town player until the emergency loan deadline on March 26th in order to allow the former Peterborough man to join another club on loan.
The Liverpudlian, who was on loan at Rotherham earlier in the season, would be unable to sign for another club on a permanent basis if his registration was released now as that would contravene the FIFA rule preventing players from being with more than two clubs in a season.
However, with the Blues still holding his registration Taylor is able to join another club on loan.
Earlier in the week Rovers boss Gary Bowyer said he is yet to make a decision on whether to loan the striker: "He’s training with us, it’s an opportunity for us just to have a quick look for him and we’ll take it from there,” he told the Lancashire Telegraph.
"The lad has got some ability, there’s no doubt about that. You only need to look at his CV to see that he has had a decent career, people have seen the talent he has, but we’re just monitoring the situation.”
Taylor, who didn’t return to Town after ending his loan spell with the Millers in January, was understood to be the club’s highest-earning player on around £10,000 a week and was out of contract at the end of the season.
The Liverpudlian joined the Blues from Posh in the summer of 2012 for an initial fee of £1.5 million, which could ultimately have risen to £2.5 million.
He made only nine starts and 16 sub appearances for Town, scoring one goal, and missed almost a year of football due to a toe injury.