South Sydney may have to release an established player to sign Sam Walker immediately.
The Daily Telegraph reports Campbell Graham, Latrell Mitchell or Jack Wighton must leave if the Rabbitohs accommodate the Roosters halfback next season.
Wighton has gauged interest from Super League clubs.
Rabbitohs officials met Walker and his management in Brisbane while he was in Kangaroos camp, the paper reported.
South Sydney is targeting him for 2027 and is believed to lead the race, despite interest from the PNG Chiefs and Canterbury Bulldogs.
The Roosters confirmed late last month that Walker would not stay beyond 2027.
Walker is believed to earn just over $1 million in 2027, requiring a significant financial arrangement between clubs for an early transfer.
Kangaroos and Rugby League World Cup duties may delay his arrival at a new club until late February.
The Roosters could pay up to three months of his salary, leaving his next club to cover about $750,000.