It would be a big risk for the centre, who would be banking on the Bunnies finding cap space to offer him a lucrative extension from 2021.
Should he agree to the Rabbitohs offer or suffer serious injury in 2020, Mitchell would lose significant bargaining power for his next contract negotiations.
The 22-year old has been offered a four-year $3.8 million deal by the Wests Tigers.
It is believed that the Rabbitohs’ priority is acquiring rising Titan Jai Arrow, with the club pushing for Gold Coast to release him a year early.
Arrow signed a four-year deal with South Sydney from 2021.
If Arrow is given an early release, it would leave the Rabbitohs with around $400,000 to pay Mitchell.
Mitchell was due to return to training with the Roosters on Monday, but he has instead been granted an absence of leave from the club as he decides on his future.
The Roosters released the following statement on the matter on Sunday night via the club website.
“In lead-up to the club’s return to pre-season, Sydney Roosters player Latrell Mitchell has been granted a leave of absence, excusing him from all training commitments.
“The club will be making no further comment at this time.”