Newcastle has reportedly offered North Queensland teenager Kalyn Ponga a AU$3.6 million contract after two NRL games.
The Knights have tabled a five-year offer to the 18-year-old worth $720,000 annually, according to News Corp Australia.
The deal would be potentially the biggest contract for a teenager in the game's history.
Ponga made his NRL debut on the wing in the Cowboys' finals win over Brisbane in September as a replacement for the injured Antonio Winterstein.
He played in the preliminary final loss to Melbourne a week later.
North Queensland boss Peter Parr is all but resigned to losing the young star.
"We face a tough battle to keep Kalyn with the money that is being offered," Parr told News Corp.
"We are bracing for the fact we can't compete with what's on offer at other clubs."
As a junior, Ponga was chased by six clubs and four sports including Australian rules and rugby union before committing to the Cowboys.