Peters has had limited playing time at the club in recent years and made just one appearance last season.
"Jaime is a terrific lad but it's not really worked out for him here since I've been here," manager Paul Jewell told the club's official website.
"We have a lot of options in the wide areas and he's not had a look in at first-team level, so it's best if he moves on because the lad needs to be playing football.
"We wish him every success and I'm sure he will get fixed up with another club."
Peters played 99 times in the league during his time at Ipswich.