Cody Walker played 24 matches during South Sydney's strong 2026 campaign before suffering an injury in the elimination-final defeat against Newcastle.
The 36-year-old, who turns 37 before next season begins, still wants to continue playing, despite his lengthy injury concerns.
Walker has exceeded 20 appearances in every season except 2025, making those concerns potentially overstated.
For two or three months, reports suggested he was close to re-signing, with both camps indicating an agreement remained more likely than not.
The delay was initially attributed to Walker deciding whether to continue, but money now appears to be the main obstacle.
James Hooper and Buzz Rothfield reported on Fanatics TV that South Sydney had offered Walker $300,000 for 2027.
That proposal has reportedly caused frustration within Walker's camp, which is considering his alternatives.
A significant reduction was unavoidable because the Rabbitohs face salary-cap pressure after signing Payne Haas and needing to upgrade several young players.
Jack Wighton also provides an established replacement at five-eighth, allowing South Sydney to avoid overpaying Walker while creating opportunities for developing outside backs.