NRL club Newcastle has been sold in a deal completed on Friday, according to a media report.
Owned by the NRL since the departure of former mining magnate Nathan Tinkler, the Knights will become part of the Wests Leagues Club group in Newcastle.
News Corp Australia said Wests would provide $10 million towards a centre of excellence for the premiership strugglers as well as injecting much-needed funds into grass roots rugby league as part of the deal.
Tinkler became the Knights' private owner in 2011 after a historic ballot.
But he was forced to relinquish ownership in 2014 amid turbulent financial times.
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"After injecting over $20 million of my own money it is time to stand aside and, hopefully, the Knights will prosper and not revert to the old management style and formula that almost sent the club into liquidation three years ago," Tinkler said at the time.
The Knights are staring down the barrel of their third-successive NRL wooden after slumping to a 28-4 defeat on Friday night to the Sydney Roosters - their 16th loss for the season.
Wests Group has a reported $143 million in annual turnover and its assets include six licensed clubs and several accommodation hotels.
"We wanted to hold out for the right buyer for the club and for the game," a NRL source told News Corp.
"And we all want the Knights to be owned locally so there is community ownership of the club."
Before the sale can go ahead, the Wests Group's 120,000 members will be asked to vote on the takeover.
Voting will reportedly take place between July 31 and August 6.
If the Newcastle sale is approved, the NRL will then direct its attention to the Gold Coast club.
A sale of the Titans is tipped to go through before the end of the season.
