Peterborough United are set to sell Josh Simpson to an unnamed club after Southend United were unable to agree a deal for the on-loan midfielder.
Simpson had been at Southend since the start of the season, but has been recalled by Posh in order to be sold once the transfer window opens.
Southend hoped to hang on to the 23-year-old, but have confirmed the mystery club trying to sign Simpson have offered a far more lucrative deal.
"We had been in discussions with Josh and Peterborough for some time as we explored the possibility of signing him on a permanent basis had the deal been right for the club," read a statement on Southend's official website.
"A good offer was made to Peterborough by the club, who have since agreed a significant fee with another team that far exceeds our valuation of the player.
"Personal terms by the purchasing club have also been tabled at a level that all sides in League Two would not be able to match.
"Therefore the manager has decided to allocate those resources available towards other targets and plans to do so are already at an advanced stage."