The striker has made two appearances for the first team since graduating from the club's academy in the 2009-10 season, and has spent loan spells at a number of clubs, including at Scunthorpe United this season.
However, the Terriers have allowed him to depart, with manager Mark Robins saying that he cannot offer regular first-team football.
"Jimmy has reached the stage of his career where he wants to play regular first-team football and have continuity, which is not something we can offer him at Huddersfield," Robins told the club's official website.
"As a result, this course of action is in the best interests of both parties. He is now a free agent to progress his career."
Huddersfield are 13th in the Championship.