Former Cobblers loanee Tom Newey is expected to have his contract terminated at Oxford United this week.
The 32-year-old’s contract at the Kassam Stadium is due to expire in the summer and he has held talks over a settlement on his current deal.
Newey made three appearances on loan for Northampton in November but his spell was ended early by an ankle injury he suffered the first half of the 2-1 defeat at Cambridge United.
His opportunities for first-team football at Oxford are likely to be limited due to their signing of former Rotherham left-back Joe Skarz on Friday.
Cobblers boss Chris Wilder is in the market for a left-back as there is no natural back-up for Evan Horwood in the Sixfields squad, the only position he does not have any cover for.