Rumours surfaced Waterhouse had joined English club Warrington last week.
Despite saying nothing had been signed, Waterhouse admitted he could be out the door.
“I think some newspapers jumped the gun about me signing a deal already,” he said.
“I want to stay at Penrith but they are having some salary cap issues for next season so there is a fair chance I will be in England.
“There are a lot of young guys coming through, so I don’t mind making way to accommodate them.”
The 30-year-old made his debut for Penrith in 2002 and won a premiership the following season. He went on to play for NSW and Australia. Luke Lewis is now the only player remaining from the 2003 grand final-winning side.
“I wanted to finish up at Penrith but there is not much I can do,” Waterhouse said.
“I have had a great time here and enjoyed every minute. In saying that we still have half a season to go, so hopefully we can do something special. Even though I am 30 my body feels great, so who knows whether I will make a comeback (to the club) in years to come.”