The young forward has been training with neighbours Lincoln City, and the club confirmed on Thursday that his contract at Glanford Park has been cancelled.
He scored just once for Scunthorpe, a last-minute winner after coming off the bench against Bury last season.
He joined from Conference North side Barrow after being reccomended by Lee Turnbull, who was manager of the Bluebirds as well as United's Football in the Community officer.
But he spent most of this season on loan at his former club.