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"Mark has had his problems with injuries, and we haven't had him available on a regular basis," said Dale boss Keith Hill.
"Sadly for Jacko that left him further down the pecking order, and with the rotational system we can operate we didn't retain him."
Jackson spent five seasons at Scunthorpe after joining from Leeds United in 2000.
He was released in the summer of 2005, after 159 appearances.