The versatile back began his rugby career with the Dragons academy before moving onto the Dragons senior squad, whilst also appearing for Premiership Teams Newport RFC, Cross Keys and Bedwas. The 26-year-old has also represented Wales at Under 20s level.
Tovey left the Dragons during the 2012/13 season and moved to rival neighbours Cardiff Blues, before retuning to the Men of Gwent in the 2013/14 season.
Commenting on Tovey's departure, Dragons Director of rugby Lyn Jones said: "It's so important for players to experience rugby outside of their comfort zone during their career. Jason has served his Region very well over the years but will need more game time at this stage of his career."
Jones continued: "We feel that our future at fly-half lies with Dorian Jones, Angus O'Brien and Arwel Robson and all will be contesting for game time between now and the end of the season."