The 28-year-old joined The Cobblers in September last year, having impressed on trial, but suffered some injury set-backs during the 2025/26 season.
Edwards was signed by Kevin Nolan, who was sacked by Northampton in March after just one win in 16 games. He was replaced by technical director Colin Calderwood, who took caretaker charge but he was unable to prevent them from relegation from League One.
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Former Town youngster Chris Hogg has since been appointed the new manager at Sixfields.
Kyle Edwards celebrates promotion to Championship with Ipswich fans on the pitch at Portman Road. (Image: PA)
The skilful winger is now looking for his fourth club since his departure from Portman Road in 2024, having also had spells at Oxford United and Stevenage.
Overall, Edwards featured 63 times for Ipswich, scoring three goals after joining from West Brom on a free transfer in the summer of 2021.
He was an important part of the Kieran McKenna’s squad which won promotion from League One in 2022/23.