Loanee midfielder Conor Grant has returned to his parent club Everton with his season-long spell with the Blues being formally ended early in January.
The 21-year-old has gone back to Goodison Park so he can feature for the Toffees' U23s having been unable to break into the Town side on a regular basis.
Grant, who had previously spent time out on loan at Motherwell and Doncaster Rovers, joined the Blues in August and made four starts and three sub appearances for Town without scoring.
Explaining the development, manager Mick McCarthy told the club site: "I felt bad for Conor because he has come to us to play games and although he has had a few appearances, his time on the pitch has been limited.
"The reality is that he was here to develop his game and that wasn’t happening because he wasn’t getting the time on the pitch he needs at his age.
"It’s not his best position but he can play on the left but Tom Lawrence has nailed down that role.
"He is better in a three in the middle of the park but we have got a lot of options there and we also have Kundai, Dozzer and Adam McDonnell - who are our players - pushing to be involved now.
"So I spoke to Joe Royle, who looks after the loan players at Everton, and suggested it might be better for all concerned, especially for Conor’s development, if he went back there and played for their U23s.
"Everton have been great about it, in letting Conor come here in the first place and then understanding the situation and agreeing that it’s best for his development if he goes back there.
"He’s a top pro, Conor and a good player. He’s a great lad as well. He didn’t ask to go back. It’s my idea and it’s been done because it’s the best thing for all concerned.”