Speaking to the Morecambe Visitor, Shrimps manager Jim Bentley expressed his disappointment at not being able to land Fletcher who made his Burnley debut there almost three years ago in a Carling Cup tie.
"We were hopeful of bringing him to the club," Bentley said. "We've been chasing him for a while but he's decided to go elsewhere. It's a frustrating one because it was looking good and he's got a lot of potential.
"I met him several times and showed him round the ground but for one reason or another he's not coming here."
Fletcher served a two year scholarship with the Clarets from 2007 to 2009 and was one of five players awarded first professional contracts at the end of the 2008/09.
He made just two substitute appearances for the first team, both in the Carling Cup, and his last involvement with the first team was as an unused substitute for the FA Cup defeat at Barnsley last January.
During his four years as a professional has been out on loan at Grimsby, Stockport, Accrington, Crewe and Yeovil. Now it looks very much as though he's agreed a deal with a League Two club other than Morecambe.