Ex-Wrexham defender Anthony Stephens will be joining Chester FC, according to Colwyn Bay manager Frank Sinclair.
Left back Stephens spent most of last season on loan with the Seagulls and had been offered an extension to his contract at the Racecourse.
But the 20-year-old turned down the chance to remain with the Reds, telling boss Kevin Wilkin he wanted to leave to continue his career elsewhere.
Stephens impressed on loan at Llanelian Road and ex-Chelsea defender Sinclair had hoped to convince him to make a permanent switch to the Conference North club.
But Sinclair posted on Twitter that his attempts to sign Stephens had failed with the player accepting an offer from the Blues.
He would follow his former Seagulls team-mate Danny Taylor in making the switch to the Swansway Chester Stadium.
Although there has been no official confirmation of the move, Wilkin said he was 'disappointed' the Liverpool-based full back had decided to leave Wrexham.
He said: "We have decided to let him move on without claiming a compensation fee, which might well be minimal anyway, as we don’t want to stand in his way.
"He enjoyed himself at Colwyn Bay, is a good lad and we wish him well."
Stephens, who can cover centre back too, had been with Wrexham since the age of 12 and spent the 2012-13 season on loan with Welsh Premier League side Prestatyn Town.
He helped the Seasiders win the Welsh Cup and was named young player of the season.
