The Blues have withdrawn their offer of a new deal to striker Shefki Kuqi. The out-of-contract Finnish international told the club last week that he would not be signing his new two-year deal and Town have ensured that he will be unable to change his mind about leaving Portman Road.
Boss Joe Royle says he is saddened by Kuqi deciding to depart and is now turning his attentions elsewhere: "I am not annoyed by Shefki's decision, but I am disappointed by it. I happen to think it's the wrong one, but that's his business.
"We made Shefki an offer and he rejected it so we responded by withdrawing our offer and pursuing other players to fill the gap.
"We could not have Shefki and one of the others - it was a case of one or the other."
Royle had been hopeful that Kuqi would stay, having enjoyed a fine 2004/05 with the Blues, scoring 20 goals and winning the Supporters' Club Player of the Year award.
Kuqi has spoken to Blackburn and Crystal Palace, with Selhurst Park now looking his most likely destination.