The 25 year old signed for the Cobblers in the summer following his release by Blue Square Premier side Kettering Town. He has struggled to make an impact on the first team this season, appearing just nine times in the League.
Manager Aidy Boothroyd explained the decision, "I believe in beng honest with people and Nick was not going to be part of the future here. It is in the interests of every player that they are playing regular first team football and he has a move lined up that will hopefully give Nick that opportunity."
McKoy started his career with Wimbledon before short spells with Cardiff City, Torquay United and St Johnstone.
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