The 25-year-old came-on as a substitute in the weekend's 2-0 win over Stockport County, but hadn't appeared under Thordarson for over a month prior to that showing.
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"We have made the decision now as we need to look at things when the transfer window opens," Thordarson's assistant, Ross MacLaren, told the club's official website.
"We decided it was best the player was told now, rather than the end of the season (when Gill's contract expires)."
Infamously booed by his own supporters during a 5-1 hammering at Rushden & Diamonds, Gill bounced back with a number of hard-working displays this campaign.
Though the end now seems nigh for the player with the longest throw at Meadow Lane, Thordarson has previously made two other high-earners available for free transfers - Gavin Gordon and Matthew Williams - and both remain at the club.