Chris Palmer has been placed on the transfer list by Walsall after a meeting between the player and the League One club, skysports.com understands.
The 25-year-old and his agent met with Walsall chief executive Paul Taylor last week to discuss the player's contractual situation.
Palmer signed an initial six-month deal with The Saddlers at the start of the season, but was looking for improved terms to reflect his impressive performances at the Banks's Stadium this term.
However, due to Walsall's financial difficulties the club were unable to offer the former Derby and Wycombe man the security he was looking for.
As a result it was agreed by all parties that the left-sided midfielder should be placed on the transfer list.
The news will come as a blow to new Walsall manager Chris Hutchings with Palmer one of the club's best and most consistent performers this campaign.