Bury have announced the signing of Nathan Cameron - on the day it was confirmed the defender would not be returning to Cobblers.
The 21-year-old, who played six games for Northampton at the end of last season following his release from Coventry City, was offered a contract at Town earlier in the summer.
But he will not be plying his trade at Sixfields next season after agreeing to join league two Bury on a two-year deal.
Cobblers boss Aidy Boothroyd said the matter needed to come to a conclusion one way or the other after weeks of talks, and is now setting his sights on other defensive options.
“There comes a time when you have to move on,” said Boothroyd.
“In this instance we have moved on and that door is now closed.”
The Cobblers boss remains in talks with potential new signings ahead of the new season.
Cameron enjoyed mixed spell with Town at the back end of last season, looking clumsy and off the pace in his first couple of games before contributing two commanding performances in the play-off semi-finals against Cheltenham.
His display in the 1-0 second-leg win at Whaddon Road was arguably one of the best individual performances of the season, and earned him substantial praise, but he struggled again in the 3-0 play-off final defeat to Bradford City.
Boothroyd had been very keen to sign the player, and had urged him to stay at Sixfields and properly learn his trade.
The Town boss said: “It took Nathan a little while to get going and at first he was a bit rigid but the kid’s going to be a really good player.
“He needs to play football and he needs to be in a team where he’s playing every week.
“It’s all very well someone telling him to go to Aberdeen or somewhere, but he needs to be playing.
“He’s at the stage of his career where getting games is more important than money and that’s why we’re trying to get him on a good deal for all parties.”