Scowcroft, 29, scored 28 goals in 147 games for the Foxes after a £3 Million transfer from Ipswich in 2001.
The striker has been on loan at Ipswich since February. However, his appearances have been limited after a number of poor displays.
Ipswich boss Joe Royle has decided not to retain Scowcroft for their forthcoming play off clash against West Ham, which leaves him free to start looking for a new club.
Coventry and Hull seem to be likely destinations for Scowcroft, who is rated highly by former Leicester managers Micky Adams and Peter Taylor.
Craig Levein’s comments:
"On behalf of everyone connected with Leicester City Football Club I would like to thank James for his loyal service to the club over the last four years.