Olakau'atu extended his contract with the Sea Eagles late last year during his World Cup campaign with Tonga, with Manly prolonging the back-rower's tenure for a further season to see Olakau'atu penned until the end of the 2025 season.
The 24-year-old's blistering start to 2023 has seen the Guildford native emerge as a potential debutant for the Blues in Adelaide later this month, while the Sea Eagles have moved to hand their exciting forward an immediate pay rise given his value to Anthony Seibold.
According to The Sydney Morning Herald, Manly will hand Olakau'atu close to $200,000 on top of his current contract as they look to satisfy their try-scoring second-rower amid plans to retain him for the long haul.
It is understood that the Sea Eagles have been able to afford the wiggle room following a swap deal that saw Viliami Fifita and Alec Tuitavake depart the club while veteran forward Aaron Woods made the move from St George Illawarra to Manly.
The pay increase is expected to have Olakau'atu among the pay grade of the league's best-performing second-rowers of 2023, with the Tongan international in line to pocket more should he secure a New South Wales jumper in the coming weeks.
Olakau'atu has gained the backing of his peers and coaches to be part of Brad Fittler's squad for Game 1 of the 2023 Origin Series, with Seibold praising his young forward's start to the year.
"I think he's had a really positive start to the season," Seibold last month.
"I'm biased, but he's played 80 minutes I think every week and I think he's had a really good start to the season, so I feel like there's some maturity to his game. I feel as though he's certainly given himself an opportunity to be in the conversation.
"Hopefully, the selectors consider him, but I would never tell another coach who they should or shouldn't pick."
Olakau'atu has played nine games for the Sea Eagles in 2023, scoring five tries and averaging over 130 metres.