Adam O'Brien has seldom used Hoy, who broke out in 2020, but struggled to replicate his form when called upon in rare appearances throughout the 2021 season.
Hoy made eight appearances in the NRL during 2021, scoring just a single try and running for 123 metres per game as he fell out of favour.
Hoy has only ever been used at NRL level as a fullback during his time in the Hunter, however, the 21-year-old also has the ability to play in the halves.
The Panthers stood May down following a controversial Instagram post after the NRL grand final, which was won by the club in their first premiership since 2003.
Hoy's touted move to Penrith comes as an intriguing option for both clubs. Ivan Cleary has, through his team selections, made no secret of the fact he likes to play with a utility from the bench.
Given the club have also lost Matt Burton, who spent the year in the centres, Hoy could well fill a bench utility spot in 2022 for the Panthers should he make the move, while also getting playing time when Nathan Cleary and Jarome Luai are in the State of Origin arena, or when Dylan Edwards is unavailable.
Hoy's prospects at the Knights all hinge on Kalyn Ponga moving into the halves, and while the club are set to lose Mitchell Pearce, that is, as yet, unconfirmed and even then, it appears unlikely Ponga will move into the halves.
That comes as the Knights attempt to source a suitable replacement for Pearce, while also having Simi Sasagi, Adam Clune and Phoenix Crossland at the club as options to partner Jake Clifford in the halves.