An independent hearing ruled that midfielder Dan Gosling is free to leave Everton as he no long has a contract with the club.
In one of the bizarre transfer stories of the summer Gosling, who had agreed to extend his Toffees deal, is now a free agent.
Everton's verbal offer was never put in writing by the due date, meaning he was never tied to the Merseysiders.
Gosling's exit should have entitled Everton to compensation as he is under 21, but the ruling means David Moyes' side could now be out of pocket.
Everton, who have yet to comment on the case, have two weeks in which to appeal the hearing's decision.
"An independent hearing, convened under Premier League Rules, was held last week to look into the contractual status of Dan Gosling," read a Premier League statement.
"Having looked into the matter, and considered the arguments of both Everton and the player, it was determined that the player is unattached and entitled to a free transfer.
"This is subject to a right of appeal by Everton which must be brought within 14 days of the decision."
Newcastle are believed to be leading the chase for Gosling's services with Premier League rivals Sunderland and West Ham also interested.