The transverse spin correlations Axx and Ayy in the np-> d pi^0 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 pp-> d pi^+ reaction, though the present results cover also the small-angle region, which was largely absent from these data.