Robert Jennings looks set to sign with the Wests Tigers after the joint venture was reportedly told they could fit him under their salary cap.
The Tigers' salary cap for the forthcoming NRL season is under a cloud as they respond to alleged breaches after offering veteran hooker Robbie Farah an ambassadorial role.
As well as deregistering chief executive Justin Pascoe, the club was hit with a $639,000 salary cap reduction.
But it was widely reported on Tuesday the NRL has given the club approval to proceed with signing Jennings and assured them the deal would not put them over the 2019 salary cap limit.
Club officials have denied any wrong doing in their response to the NRL's breach notice and are confident of a favourable outcome once their appeal is finalised.
An NRL spokesman said the governing body would not comment on any on-going investigation.
Winger Jennings could not come to an agreement with the Rabbitohs despite a strong 2018 which saw him finish third on the try-scorer's list with 19 - only behind David Fusitu'a and Valentine Holmes.
His departure from Redfern will open the door for the Rabbitohs to complete the signing of North Queensland forward Ethan Lowe.
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