The Warriors have been waiting patiently for Luke to make a decision on his playing future over the past two months after offering him a modest one-year deal.
Luke was hoping to secure a longer and more lucrative contract but recommitting to the Auckland-based outfit may now be the only option left on the table.
The cash-strapped Warriors have little money left to spend and are unable to increase their offer due to salary cap restrictions.
Concerns about Luke's long-term fitness may also be a factor in why they are refusing to provide him with anything more than a one-year extension.
Luke was reportedly set to go under the knife this week and there are fears he may require a shoulder reconstruction which could keep him sidelined until March next year.
The 254-game veteran has had a history of shoulder problems and was forced to miss the Warriors' round 10 loss to the Roosters after suffering a dislocation during the previous week's win over Wests Tigers.
Luke, who was nominated for the Hooker of the Year gong at last night's Dally M Awards in Sydney, declared he wanted to remain at the Warriors.
"We want to stay in New Zealand as a family, my wife and the kids," Luke told NRL.com.
"It's a pretty important couple of weeks coming up. But we'll see how that goes in the next couple of days.
"My manager is trying everything he can to get a really good contract.
"In saying that, I'm happy where I am and obviously I want to stay."
The Warriors have been hoping the matter would be resolved this week and an announcement on Luke's future is expected soon.