Striker Pablo Couñago has turned down a move to Córdoba in the second tier of Spanish football. However, the 25-year-old is now resigned to leaving Portman Road.
Manager Joe Royle told the club site: "Pablo has turned down the chance to return home and sign for Córdoba.
"But the two of us sat down and had a very amicable chat this morning and Pablo accepts that it will better for his career if he finds another club.
"He is available on a free transfer and we will do everything we can to try and help find him a new home.
"We will circulate his name to the other English League clubs during the transfer window and also use our contacts in Spain and see if anything develops."
The former Spanish U21 international, the only player at Town still on a large Premiership wage, recently said he was keen to remain at Portman Road despite his lack of opportunities and says he will be sad to leave: "I love this club and have enjoyed a great relationship with the fans since I first came here and, while I will be disappointed to leave Portman Road, it is now the right thing to do for my career."
Couñago, who turned down a loan spell with Preston earlier in the season, joined the Blues on a Bosman free transfer from Celta Vigo in the summer of 2001.
Appearances have been rare this season with Shefki Kuqi and Darren Bent cementing their positions as Town's regular strike-force.
Couñago, whose contract is up in the summer, has scored 35 goals in 114 games for the Blues.