The Bulldogs sacked Hasler on Tuesday - just five months after agreeing to a two-year contract extension.

Pay's been linked to the job since October last year when the board met to discuss Hasler's future.

The Raiders said they wouldn't stand in the way of him taking up the role then and it's believed he'd go with their blessing if he got the job now.

Pay has also interviewed for the senior job at Super League club Warrington Wolves and met with their chief executive Karl Fitzpatrick last week.

He's been an assistant coach under Ricky Stuart at the Raiders since 2014, as well as leading the NSW under-20s to State of Origin success

Current Bulldogs assistant Jim Dymock has also indicated he is keen on the role. Former South Sydney coach Michael Maguire is also likely to come into contention. Hasler, meanwhile, will undoubtedly make a shortlist to replace Laurie Daley as NSW coach, although Brad Fittler is also firmly in the frame.

After a contract negotiation that dragged on for over a year, the Bulldogs finally announced that Hasler would remain at Belmore on a two-year extension in April. The Bulldogs subsequently missed out on the finals for the first time on Hasler's watch, registering the NRL's worst attacking record in the process.

There has been speculation over Hasler's future from the moment Canterbury legend Steve Mortimer told Fairfax Media the club was "losing our DNA" under the former Manly mentor last October. The club is now looking for a new coach, and a new captain following James Graham's departure to St George Illawarra, while there isn't a CEO at the helm until NRL official Andrew Hill begins at the competition of the World Cup.

The Bulldogs board is up for re-election early in 2018 and there was a feeling that if Hasler wasn't moved on, the incumbent directors would be. While they will have a fight to convince the club has acted appropriately in sacking Hasler and releasing favourite son Josh Reynolds, they could have a more immediate battle on their hands.

It's understood Hasler believes he is entitled to a payout of over $1 million after having his contract terminated prematurely, although Bulldogs chairman Ray Dib claimed the decision to extend him was a "non-binding" one.

"Today, I informed Des Hasler and his management of our decision to pursue a new head coach for our club, effective immediately," Dib said. "The heads of agreement reached with Des Hasler for an extension of his contract were non-binding and a decision has been made not to renew his contract for next year.

"These types of conversations are never easy, especially when they involve people we respect personally and professionally, however, the club believes the decision to change our football leadership was absolutely necessary. The club will now begin its search for a new head coach and will provide further information once that process has been completed."

Canterbury's two big off-season signings, Kieran Foran and Aaron Woods, committed to the club on the understanding Hasler was going to be coach. Foran in particular has a close bond with Hasler from their time together at Manly and the Bulldogs will need to move on at least one more player to free up the salary cap space to accommodate the pair. Foran may reconsider his move given his contract has only been registered provisionally.

Hasler had been at the helm of the Bulldogs since 2012 and guided the side into the finals in every one of those seasons save for this one. However, his 57 per cent success rate was deemed inadequate, even though the Bulldogs showed signs of a revival by winning their last three games.

Mortimer and fellow great Terry Lamb have spoken about the culture that makes Canterbury unique, believing Hasler didn't fit the mould. It has led to suggestions the club will replace Hasler with "one of their own".

Pay has the advantage of having played for the "family club". Ditto Dymock, who recently said he was interested in the top job if Hasler was sacked.

"Definitely," Dymock said earlier this month. "I have aspirations of being a head coach.

"To be head coach of a side that I've spilled blood for would be an honour for me. I'd definitely put my hand up. If that opportunity comes, I feel I'm ready. I've been coaching for 13 years so I think I've put the time in."