Delial Brewster is just one year into his two-year contract but his future now lies elsewhere.
The 20-year-old played just three times for the club but never started a game and was sent out on loan to Chorley in the second half of the season.
Boss Martin Allen said: “Delial Brewster has agreed his settlement for terminating his contract.
“That gives him the opportunity to go out and find something new for himself.”
Brewster was signed by Town after his release by boyhood club Everton.