Evans lead a consortium of investors who were interested in buying the Hatters, however that bid collapsed early in the week with the businessman withdrawing his takeover proposal.
In a statement on the club's official site, chairman Lord Peter Snape expressed his disappointment in the failed bid but assured fans he was still on the look out for investors to secure the future of the club.
"If Tony Evans has now decided to end negotiations between us then it is a matter of regret but the board remains ready to listen to sensible proposals from him or any other would be investor."
Evans, who linked up with County in the summer, was equally as despondent, "I worked tirelessly and passionately to conclude this deal. I'm extremely disappointed to be leaving as I continue to believe that the club can have a strong future, both on and off the pitch."
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