Scott Vernon has snubbed a move to Carlisle United, opting to stay at Colchester, in a deal that would have seen Carlisle keeper Ben Williams move to North Essex.
It is understood that Ben Williams had agreed to a move to the U's after Carlisle had accepted a part-exchange offer, but the deal has now fallen through.
Carlisle boss Greg Abbott confirmed on Carlisle's club site: "Scott has decided that he wants to stay with Colchester at the moment, so he won't be coming up here to join us.
"He has told his people down there that he wants to try and fight for his place. He hadn't initially asked for a transfer, so he feels that he wants to stay there at this moment in time."
Following the sale of Dean Gerken this week, the U's could return with an all-money offer for Williams to seal his signing.