"We had talks with David Nugent and his representatives earlier this week after agreeing a fee with his club Bury," PNE Chairman Derek Shaw told the clubs official website.
"Unfortunately his advisors decided that the deal which we offered David was not to their liking and therefore negotiations ended.
"We believe we offered a very good three-and-a-half year deal for a 19-year-old prospect who has had only had one year in the game at League Two level.
"Until we know anything different the matter is finished with and we will continue to pursue targets elsewhere."