The 31-year-old had another 19 months to run on the lucrative deal so it's unlikely he would walk away without another club in mind.
Town boss Paul Groves is a known admirer, and personal friend, of Donovan due to their spells at West Brom and later Town.
The question of 'do we need another winger?' is bound to be asked. Especially with Donovan spent the past two season bogged down with injuries.