The 26-year-old has returned to his home country and city, where he has joined A-League side Perth Glory.
Lowry has signed a two-and-a-half year contact with the Western Australia outfit.
Following his arrival at St. Andrew's in September 2015 on a short-term contract as defensive cover, Lowry made just two senior appearances for Blues.
His first start was in the 1-0 Sky Bet Championship victory against Cardiff City the week before Christmas and the second as a substitute in the Club's Emirates FA Cup third round 2-1 defeat to Bournemouth earlier this month.
Lowry had spent the previous season at Leyton Orient but elected to leave the O's after they were relegated to League Two.
The Perth-born player first moved to England in 2005 as a 16-year-old to join Aston Villa, where his performances as a teenager saw him earn a professional contract.
Lowry said: "I’ve really enjoyed my time in England and it’s been pivotal in shaping my football. The time was right to come to Perth and play with Glory, which has been a goal of mine in more recent years.
"As a Perth boy I’m keen to do my bit and steer the club to its first A-League championship, but more importantly help the team make the finals this current season".