The 20 year-old was released from his contract at the Stadium of Light along with Cliff Byrne at the end of last season and he's still looking for a new club.
Capper has featured in both of the Iron's pre season friendlies so far but Laws says he won't be in the squad that travel to face Brigg Town tonight
Laws told the Scunthorpe Telegraph: "Steve won't be with us for tonight's game, although there is a chance that we may bring him here again in the future. At the moment it is more important for him to try and find himself a club.
"We have had a look at him and he has not done himself any harm, but everyone knows that Nathan Stanton is our first choice right-back and he is a very good player.
"I sat down and spoke to Stephen yesterday and I would have felt guilty if we had kept him and denied him the opportunity of moving somewhere else. I think if he gets offered a contract somewhere else then he will more than likely take it."
The Iron's annual game with Brigg kicks off at 7.15pm tonight with United fielding a strong side.
Jamie McCombe, Andy Butler, Kevin Sharp, Terry Barwick, Alex Calvo-Garcia, Lee Featherstone and Andy Parton are not expected to feature in tonight's game however having all played in the Iron's 6-0 demolition of Barton Town last night.