Knights co-captain Tariq Sims has signed a three-year deal with St George Illawarra but Newcastle officials remain undecided if he will become their next player to be granted an early release.

In the past 12 months, Newcastle have allowed Beau Scott (Parramatta), Joey Leilua and Joseph Tapine (both Canberra) to prematurely terminate contracts and link with rival clubs.

Sims' agent, former Melbourne, NSW and Test player Scott Hill, said on Monday that "there'll be an announcement tomorrow [Tuesday] on Tariq's direction going forward." There was speculation that Monday night's clash with Parramatta at Hunter Stadium would be the 26-year-old's last game for Newcastle.

But Knights chief executive Matt Gidley denied any such decision had been reached, saying he would "prefer Tariq to roll up his sleeves and play out the season".

Gidley said if the Dragons were intent on rushing Sims into their squad before the June 30 deadline, it was up to them to present Newcastle with an "attractive" proposal, such as a player exchange.

Otherwise Sims is contracted until the end of this season and Newcastle expect him to fulfill his obligations.

"Tariq had an option for 2017 and we encouraged him to take that option up," Gidley said. "Ultimately the security of a three-year deal with the Dragons was more appealing, and he's chosen to take that up.

"At this stage, we're open to having a discussion [about an early release] but Tariq's contract with us is until the end of 2016."

There have been suggestions the Dragons might consider trading back-rowers Jake Marketo or Will Matthews to accommodate Sims.

If Sims is unable to negotiate an early release, he may have to accompany his Newcastle teammates to Townsville this weekend to play against his former club, North Queensland, for the first time.

It is understood the Knights baulked at matching the Dragons' offer for Sims – believed to be worth more than $400,000 a season – instead asking the NSW Country representative to take up his option for next year, on the proviso he would be in line for an upgrade should he be called up for his Origin debut.

"They wanted to just leave that one year there for him to play for the next contract," Hill said. "All players think differently. A lot of players like to have that bit of security, which is understandable.

"He's got a young family and a lot of other commitments outside of his football as a father and as a provider and every player and every person is looking for security at that time of their career."

Knights coach Nathan Brown said Sims was entitled to do the best for himself and his family and did not deserve the criticism he had attracted on social media.

"That's the business we're in," Brown said. "I think people should understand that. It's not his fault that he got offered what he got offered.

"We just made a decision as a club … not to move into those figures."

Sims has played 26 games for Newcastle since joining them last season from the Cowboys. Gidley said the departure of Sims would have no bearing on negotiations with Newcastle's other off-contract back-rower, Robbie Rochow.

"Robbie's exactly the type of guy we want to keep," Gidley said.