OXFORD United have accepted Chris Wilder's resignation and agreed a compensation package which will allow him to take up a new role at another Sky Bet League Two club.
Northampton Town are expected to confirm Wilder as their new manager shortly.
The move this evening ends a confusing 24 hours for United.
After yesterday's 1-0 win over Torquay United, chairman Ian Lenagan said he understood the U's boss had resigned, only for Wilder to release a statement three hours later rejecting the claim.
The pair were in contact today and reached an agreement which paved the way for the 46-year-old to make the move to Sixfields.
Lenagan said: "First and foremost we thank Chris for five years of service at Oxford United.
"He has worked very hard and helped move the club from the Conference to becoming an established League 2 side.
"We are grateful for his efforts on behalf of Oxford but disappointed that he chose not to continue to the end of this season’s journey.
“Today the formalities were completed to allow him to move on.
"The other club involved have acted professionally throughout the process and the two clubs have agreed a compensation deal that is satisfactory to Oxford United.
“We now move into a new era for Oxford United. The club has already started a thorough, professional search and interview process for the next permanent manager.”
Mickey Lewis, who was Wilder's assistant, agreed yesterday to become caretaker manager at United. His first game in charge will be away to Exeter City on Tuesday.