Inverness Caledonian Thistle are on the verge of signing Danny Williams from Kendal Town FC.
The winger has been on loan with Conference North champions Chester FC with Blues manager Neil Young suggesting that Caley had won the race for his signature.
"We're gutted we've lost out on the deal," said Young.
"I'm not a defeatist but when a player like Danny gets away - who we've scouted and chased and chased and chased - it's a massive blow as he fits everything we're trying to do.
"It's a great move for the lad and on the flipside it's great credit to what we've done for him here at Chester - he's going from Kendal to play in the Scottish Premier League. It's not all done and dusted yet but it's nearly there.
"We wish him well and he's another of those little nuggets we've found over the three years."