The Irish midfielder was released by the Edinburgh club earlier this week and looks likely to move to England in order to secure a regular starting spot.
Speaking to the Daily Record, Deegan said: "I will be sad to leave Hibernian and it is a big wrench to know I won't be coming back to the club this summer.
"The manager and the players were fantastic to me but I have not been playing as regularly as I would have liked.
"Coming to the end of last season it wasn't really happening for me at Hibs. The writing was on the wall when the club made a couple of signings.
"I am not the kind of player who is happy to sit on the bench and make substitute appearances here and there so I am leaving to pursue regular first-team football."
The former Coventry City player has been linked with a number of clubs in League One.