Striker Dean Morgan has left Colchester after his contract was cancelled by mutual consent. The 19-year-old was in the final year of his deal at Layer Road and he could now join Luton.
Morgan started out with the U's as a trainee and made 78 appearances for them in his three years at the club.
He has been out injured this season and has been restricted to just one reserve-team game.
According to BBC Essex, Southend were keen on signing him but the Hatters - with whom he is believed to be training - appear favourites for his signature.