Hargreaves was set to play against Town this season in the newly named League Two, but rejected the reduced one-year contract offered to him by the Sixfields club.
Despite starting out at Town as a striker/winger, Hargreaves has over the years molded into a tough tackling central midfielder with a shocking hair style.
Hargreaves joined the Cobblers four years ago on a free transfer from Plymouth, although he was linked with a return back to Home Park last summer.
32-year-old Hargreaves will now link up with Martin Allen's men for next season with a host of fellow new faces, including Town's nearly hero from last season, Isaiah Rankin