The 29-year-old cricketer had accepted an invitation to join his local side as a player/coach and has admitted to being frustrated after the league blocked the move.
But Newby says he would be happy to take up the offer if the league ever changes its rules.
“The club has a really nice family feel to it and I was looking forward to playing and coaching there, so I will definitely keep in touch,” said the Blackburn-born player, who is now based in Over Hulton.
“A lot of the Lancashire players like to be affiliated to a local club because the games can help if you are coming back from injury or if you just want to keep ticking over if you are not getting regular matches for the county.
“Westhoughton seemed perfect for me because it is only five minutes from my house. The idea was to get in about 10 or 15 matches, depending on Lancashire’s fixtures. We start the four-day games on a Sunday, so even if I was picked for the squad I would still have been looking to play for Westhoughton on a Saturday.
“So it is a little bit frustrating not to get that chance.”
The Bolton League had ruled Newby could not be registered for Westhoughton because he was already registered in another league for Lancashire.
“I think the rule quoted seems a bit silly considering Lancashire play county cricket and can’t really be compared to club cricket,” he added.