The player has said he would be happy to stay, but with a loss likely for the Suffolk club next season they will need to take drastic cost-cutting steps.
Meanwhile the transfer listing of Lee Bowyer has lead to speculation that he could be set for a move upto Newcastle.
His club, Leeds United, say he can now move on after he rejected a contract extension - and the Yorkshire outfit won't risk losing him for nothing next summer.
Reports suggest that he would prefer a move back to London, although Arsenal appear to be the only London based club showing any interest.
Liverpool boss Gerrard Houllier has also registered his interest in the player, although he would make a welcome addition to the Toon squad.
All three club's would be able to offer the talented midfielder Champions League football next season.