Rebels resigned to losing star McMahon

Melbourne Rebels are resigned to losing Wallabies backrower Sean McMahon to Japan, with the Australian Rugby Union playing hard ball over his pay demands.

The 22-year-old, who has already played 15 Tests, is believed to be disillusioned with his treatment by the country's rugby bosses and considering moving overseas.

While the ARU rolled out the red carpet for Kurtley Beale to return and bolster the NSW Waratahs and Wallabies, the ARU have shown little love for one of Australia's most promising talents.

McMahon has an offer on the table of over $1 million from a Japanese club, while the ARU are only prepared to pay about one third of that.

McMahon returned to action for the first time this season last week after spending the past seven months sidelined following ankle surgery and a knee injury.

He showed with his cameo off the bench he'd lost none of his impact, almost lifting Melbourne to victory over Queensland.

If he gets through the next three Super Rugby games unscathed, he'll be a leading contender to start in Australia's back row for the Tests against Fiji, Scotland and Italy in June.

But money talks, and particularly when the wage gap is so extreme, but the uncertainty surrounding the Rebels' future in the competition couldn't be helping convince McMahon to stay.

Melbourne assistant coach Morgan Turinui believes players have already signed deals with other clubs because of the ARU's failure to declare whether they would chop the club or the Western Force from next year's downsized competition.

Turinui said he'd turned down an overseas coaching position to stay.

"It certainly wouldn't have helped having less than perfect certainty about the club that gave him his opportunity, that backed him all the way, that got him to the Wallabies on the back of his own hard work and talent," Turinui said.

"It must be hard for him to be sitting back and seeing these things unfold and I can't see how it couldn't be a factor."