The 31-year-old has been restricted to just 19 appearances since joining Town in the summer of 2011, and only three of them were starts.
He revealed he was not part of manager Mick McCarthy's plans moving forward, but he insisted the club were in good hands with McCarthy at the helm.
"It hasn't really worked out for me at Ipswich for one reason or another but I wish the Club all the best for the future," Ellington said.
"Mick McCarthy is a terrific manager and treats you with respect. He has been great to me since he arrived at the club and Ipswich are in good hands with him in charge.
"It's a terrific football club but it's the right decision for me to move on. I still want to carry on playing and have already started looking for a new club."