The Newcastle Knights say they won’t be sucked in to breaking the bank for players despite reports star centre Dane Gagai has signed with the South Sydney Rabbitohs.

Gagai has reportedly agreed to terms on a three-year $2.1 million move to Sydney and it’s understood a third-party agreement was enough to lure the Queenslander out of the Hunter.

Knights CEO Matt Gidley said Newcastle were struggling to match some of the bigger clubs in regards to TPA’s.

“The vast majority of businesses already sponsor us, which excludes them from entering into third party arrangements,” he said.

“We are working hard, and we do have some, but it will take time to get anywhere near the scale of some clubs.”

Rumours continue that Souths flyer Alex Johnston is set to leave the Rabbitohs and Gagai’s impending arrival will tighten South Sydney’s salary cap dramatically.