But the 23-year-old had signed just a one year deal and it was reported last week that he wasn't going to sign the new two year deal on offer to him.
Pugh wasn't offered a deal at the end of apprenticeship in 2006 at Burnley where he was named as a substitute in first team games but never made an appearance. He's since played for Bury before going on to Shrewsbury and Hereford.
He's been linked with a move to two clubs, both of whom have been promoted. It was thought likely that he could be on his way to Bournemouth but now he could just be on the brink of signing for Leeds United according to sources both locally and in Hereford.