Former Stalybridge forward Jennings, 21, was signed by Laws' predecessor Alan Knill and failed to score in a dozen games as the Iron were relegated to League Two last season.
He was sent out to Conference Premier side Stockport in November 2012 and scored four times.
Laws told Scunthorpe's official website: "We've got to make some decisions regarding Connor.
"I have spoken to the lad and he probably needs to step out and go and get games somewhere else because I can't see him getting any game time with us."
- Sports & Recreation