The NRL has a dramatic history with voided contracts, but Newton insists none of the previous examples applies here.
“What we have told him and his management team is that essentially, it is their responsibility to honour the contract and not terminate,” Newton told SEN 1170 Mornings.
“There have been many situations over the last several years where there is mutual agreement to terminate.
“The Tigers haven’t looked for that.
“Papali’i and his team are well within their rights, like any other workplace, to request a termination.
“That’s not to say it should be granted or that it will be.”
The deal was signed earlier this year and will see Papali’i earn an estimated $1.9 million over three years, but in the wake of the sacking of Michael Maguire, he is now believed to be seeking termination to stay at the Eels.
However, Newton did reiterate that no steps have been taken to intervene, only to advise.
“Our involvement has just been to say that they have a responsibility to honour their contract,” Newton said.
“They are well within their rights to request a termination just like every other employee in this country”.
Should the contract be upheld, Papali’i will officially leave Parramatta in November in preparation to play for their inner west rivals come round one in 2023.