South Sydney does not have room under its salary cap to take on Sam Walker's deal, which is worth about $1 million a year.
Even so, the Rabbitohs are willing to bring the halfback in immediately from the Sydney Roosters, his arch rivals.
Sources not authorised to speak publicly said South Sydney officials met Walker in Brisbane, where he is with the Kangaroos' World Cup squad.
Walker is contracted to the Roosters, the premiers, until the end of next year.
The club is prepared to release him now after talks over an extension broke down two weeks ago.
The impasse followed Walker, a Queensland half, asking for more time to consider the proposed deal.
Latrell Mitchell, Campbell Graham and Jack Wighton are among several prominent Rabbitohs whose contracts expire in 2028.
None has been asked to leave immediately to create room for Walker.