Cody Walker played 24 games for South Sydney in 2026, scoring nine tries and recording 26 try assists and 27 line-break assists.
His performances addressed some of the Rabbitohs' concerns about his age, injury history and ability to maintain fitness.
The 36-year-old is reportedly close to a one-year extension, with the Sydney Morning Herald reporting negotiations have progressed.
South Sydney initially offered about $300,000 for 2027, but Walker's management was reportedly dissatisfied even after the club improved its terms.
Walker is believed to have received offers from two other clubs: the Perth Bears, who are rumoured to be interested, and an unnamed Super League side.
He has long wanted to finish his career as a one-club player, having made his NRL debut for the Rabbitohs in 2016.
Walker is also approaching 250 games for South Sydney, with an announcement on his future expected in the coming weeks.