Town chairman David Sheepshanks has hailed Matt Holland as perhaps the most popular player ever to wear the blue shirt and reiterated his disappointment at the skipper's departure.
He told the club site: "I do not think that I can pay Matt Holland a higher accolade than to say he must rank among the most popular, if not THE most popular player ever to take to the pitch for Ipswich Town Football Club.
"He has been the most magnificent role model, leader and inspiration to his fellow players and fans alike.
"It has been a horrible experience for us having to make the decision to part with such a player, but as upset and disappointed as all Town fans will be to lose him, I can only re-emphasise that we really had no alternative.
"Finances are now improving at the club, but given the devastating effects of relegation and the transfer market collapse, it is impossible for a club of our size to afford the Premiership wages that Matt rightly commands.
"As to the transfer fee, I would agree with all those who say it should be more, but we have to operate in the reality of today's market place.
"Matt himself had ruled out moves to all but less than a handful of clubs in the south and only two of them were prepared to even make an offer.
"Any delays in this sale until later in the summer would have been unlikely to attract a greater fee, indeed rather the opposite, as the new 31st August deadline serves to depress values.
"Nevertheless, we have to consider a combination of the fee and the three years of wage savings, which add up to a large amount.
"I am sure that all Town fans will express their own thanks in many ways, however on behalf of the club, I would like thank Matt Holland for his extraordinary and lasting contribution to Ipswich Town both on and off the field.
"He has been a wonderful servant to the club and we wish him only the very best for the remainder of this career.
"As for us at Portman Road, we must look forward to a new era. There will be new players and new favourites to emerge. Joe Royle has known for some time that it was likely that Matt would go and he is building the new Ipswich Town side for the season ahead."
Holland himself says he will miss the fans at Portman Road: "I'm sad to leave the club that has felt like home since I first walked through the doors six years ago.
"I love the place to be honest and felt like part of the furniture. It's certainly going to feel funny turning right down the A12 and heading for London, rather than towards Ipswich.
"I have so many great memories of the place. Becoming skipper was a great honour for me, winning the Play-Offs at Wembley, finishing fifth in the Premiership, playing in Europe, the San Siro, special times.
"I have also been lucky enough to have enjoyed a great relationship with the fans and the two Player of the Year awards I have received from the supporters mean so much to me.
"No club could wish for more loyal supporters and they have always backed the team, even through the disappointing times."