Jaques had played two first-class matches before joining Northants

Jaques made over 1,400 for the club in 2003, but then returned home to play state cricket for New South Wales.

Although he has a British passport, it means he can no longer be regarded as an England-qualified player.

Northants have signed South Africans Martin van Jaarsveld and Johann Louw as their two overseas players.

The club initially claimed that current registration regulations, as they applied to Jaques, were in breach of European employment law.

Under EU law only players who have passports from outside Europe can be classified 'overseas', and counties have a quota of two such players per club.

But Northants have decided not to pursue the matter following talks with the England and Wales Cricket Board.

A club statement read: "After considerable thought and consultation, the committee fully support the need for regulations which focus on the development of cricketers who are committed and qualified to play for England.

"In view of the above, the application to register Phil, as a result of holding a British passport, has been withdrawn."

Jaques could qualify to play for England in three years if he spends the majority of each year in the UK, but he told BBC Sport last September that he wanted to give himself every chance of playing for Australia.

ECB Registrations and Contracts committee chairman David Kemp said he was "very pleased" the issue had been resolved.

"We are charged with drafting and implementing registration regulations agreed by the first-class counties, and we always aim to ensure these regulations best serve the interests of cricket in this country whilst being in accordance with the law," he added.