The transverse spin correlations and in the reaction have been measured for the first time in quasi-free kinematics at the COSY-ANKE facility using a polarised deuteron beam incident on a polarised hydrogen cell target. The results obtained for neutron energies close to 353 MeV and 600 MeV are in good agreement with the partial wave analysis of data on the isospin-related reaction, though the present results cover kinematic regions that are largely absent from existing data sets.