The midfielder was signed for a third time by Gary Johnson last summer but the writing had been on the wall for his Sixfields career for some time after Aidy Boothroyd's arrival.
Now free to find a new club the smart money has to be on Davies and Johnson linking up again at Yeovil where the player enjoyed great success in his first spell with the club.
Johnson often makes moves to sign players he knows well and earlier this week agreed a deal to take Lewis Young to Huish Park after his Cobblers exit.
Check out Arron Davies's stats from his solitary season at Sixfields by clicking below.
***Update***Byron Webster has also been allowed to leave the club after having his contract terminated and he has joined Johnson at Yeovil while Davies has agreed a deal with Exeter City.