The 24 year old has struggled for consistent first team football at Portman Road over the last few seasons. He has spent time out on loan with Yeovil Town and Gillingham in the past.
Peters' departure follows comments made by manager Paul Jewell in the week where he said fringe players would be allowed to leave the club.
"We've got a big squad here, so we've got a lot of players who are on the fringe so if the opportunity comes and it suits us and suits them, then we'll listen to offers."
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