The midfielder has not had the best relationship with Graham Westley and wanted to leave the club back in January. Peterborugh had tried to capture Coutts during the transfer window but all offers were rejected.
It seems that Preston have accepted Coutts will leave with a year left on his contract so the Whites can cash in. Hull were rumoured to be interested with no formal approach but Preston have accepted an offer from Peterborough for around £400,000.
Coutts held talks with his former club but could not agree personal terms. This will be the major stumbling block as Coutts will clearly be on more money than most clubs at this level and Championhsip level would typically pay.