The Dolphins have taken yet another hit for their inaugural season in the NRL, with Kalyn Ponga set to sign with the Newcastle Knights on a monster contract extension in the coming days.

The Redcliffe-based outfit have taken hit after hit in the free agency market, and it got worse last week, with Harry Grant and Jahrome Hughes both recommitting to the Melbourne Storm long-term.

While the Dolphins have launched a savage raid on the Melbourne-based club in the forwards, securing the services of Jesse Bromwich, Kenneath Bromwich and Felise Kaufusi, they are yet to sign a genuine marquee option in the spine.

At this point, Jamayne Isaako remains their only backline player with NRL experience, and they were sweating on Kalyn Ponga to jump ship to the Dolphins instead of remaining in Newcastle where he had a player option up his sleeve, allowing him to negotiate elsewhere.

Ponga is virtually the last marquee option available for 2023, and while Cameron Munster now appears likely to wind up in Redcliffe, that won't be until 2024, unless Munster receives an early exit from the Storm, which also appears unlikely.

The Daily Telegraph are reporting the new deal with the Knights could be announced this week, and would be worth a mind boggling $1.1 million or $1.2 million per season over the long term, with the contract potentially to last for five years.

It comes after Ponga met with Bennett and Dolphins CEO Terry Reader in Sydney after the Knights' loss to the Cronulla Sharks on the weekend.

Despite that, Ponga has reportedly told those close to him that he will re-sign to stay in Newcastle, with the Queensland State of Origin star to receive the mammoth upgrade.

With Ponga seemingly now off the open market, the Dolphins will be forced to hope the Storm release Munster, or the New Zealand Warriors release Reece Walsh as the club's first marquee players.

The club are also reportedly chasing Herbie Farnworth from the Brisbane Broncos, who they could yet turn into a fullback given a complete lack of options outside of those already contracted, with Matt Dufty currently the only off-contract regular fullback with first-grade experience heading into 2023.