The 29-year-old, who played a significant role in the club achieving back-to-back promotions in recent seasons, has struggled to break into the Canaries first team since their elevation to the Premier League in 2011.
The Scot has played just twice for Norwich this season and has spent time on loan at Cardiff.
Norwich boss Chris Hughton told the club's website: "In my time at the football club, Simon's application and attitude has been excellent, and I would like to wish him all the very best for the future."
Lappin arrived at Carrow Road in 2007 from St Mirren and went on to make 126 appearances for the Canaries.
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