They are currently being managed by former Iron defender Alan Knill, who took charge in a caretaker basis after Mick Harford was sacked.
Director David Veal said: "After careful consideration the board has reluctantly agreed to let Deon move on. We felt this was the best decision in the interests of the club and the player, who has clearly decided he wants to move on.
"Deon can go but we will be looking to use the opportunity for our coaching team to bring in new players to the squad."