Burnley are on the verge of signing Preston North End's Graham Alexander for £200,000 on a two-year deal.
The defender is in the final year of his contract at Deepdale and Preston were unwilling to match Burnley's contract offer of two years.
The right-back made his 400th appearance for The Lilywhites on Saturday and has scored 63 goals during his time at the club.
Preston chairman Derek Shaw explained that it was a "sad day" for Preston but was optimistic about the opportunity Alexander's departure might present to youngster Billy Jones.
"I received a call from the Burnley chairman on Tuesday, it came as a little bit of a shock that he was interested in Graham," Shaw told the club's official website.
"We quite possibly would have renewed Graham's contract, he's a fit man. But we have got Billy Jones waiting in the wings, he's 15 years younger and hopefully he is one of the best prospects at right-back.
"We signed Billy Jones in the summer and had the tribunal last week, Billy is here champing at the bit to play.
"We aren't kicking Graham out of the door - we don't want him to go. But he's got the opportunity of a two-year deal and we weren't prepared to match that.
"You have to make decisions in football and we have made this decision to allow this deal to go through.
"We feel that it is too good to turn down. It's a very sad day."