South Sydney's plans to bring Payne Haas to Heffron Park in 2027 have helped rule out a move for Sam Walker, whose expected asking price would stretch the club's budget.
Coach Wayne Bennett told News Corp the Rabbitohs would not pursue the Roosters halfback.
"Look, we can't afford Sam Walker," Bennett told News Corp.
"We've got a salary cap like everyone else and we would have to let a player go to fit Sam Walker in and we're not going to do that.
"I'm happy with the squad I've got.
"We've got Payne Haas coming and Cody (Walker) will be with us next year, we'll get a deal done with him."
The Roosters announced on Monday night that they had withdrawn their offer to extend Walker's contract beyond next season.
News Corp reported the club and Walker's management could not agree on his revised asking price.
The Roosters said their recruitment and retention decisions would protect the salary cap and support the squad's long-term strength and success.
Walker is expected to leave Bondi, and clubs are watching the premiership-winning halfback, who can negotiate for a 2028 contract in days.
Since Adam Reynolds left, South Sydney have tried Lachlan Ilias, Jamie Humphreys and Ashton Ward at halfback.