Alex Bruce has turned down the new deal on offer to him from Ipswich.
The Republic of Ireland international, who has just six months to run on his current deal, was offered a two-year extension to keep him at Portman Road.
However, Bruce has rejected the offer and he now looks set to leave Ipswich.
Ipswich chief executive Derek Bowden confirmed the defender has turned down the club's offer and that the matter was closed for now.
"We consider the offer to be a very good one but I can confirm that it has been rejected," Bowden told the club's official website.
"That is the end of the matter for now."
InterestMeanwhile, one player who could be on his way to Ipswich is Argentine midfielder Luciano Civelli.
Ipswich are in talks with Civelli's club Club Atletico Banfield after the 22-year-old caught the eye of Ipswich's scouting staff.
Town assistant boss John Gorman is hopeful that they can agree a deal to sign Civelli.
Steve McCall and Simon Hunt saw him playing in Argentina and things are progressing at the moment," Gorman told the club's website.
"We are definitely interested and it's an on-going situation at the moment.
"Hopefully it will work out because the lad has obviously got potential and it always gives a club a boost when you bring in a new player."