After losing the battle to the Parramatta Eels for the signature of Chris Sandow, the Rabbitohs are obviously on the lookout for a new half. After a poor start to his NRL career, Kelly has really shone this year and the Rabbitohs could use his creative spark with the loss of Sandow.
Adding fuel to the rumour is the connection between Kelly and the Rabbitohs Test star Greg Inglis. Kelly and Inglis are cousins and the Rabbitohs could be using the family ties as extra incentive to lure Kelly to Redfern.
Losing Kelly would be a major blow for the struggling Sharks after a promising start to the season. With only two wins from eight matches this season and the loss of props Luke Douglas and Kade Snowden (who have both recently signed with new clubs for 2012), the Sharks future without Kelly next season would be even more bleak.
There were reports last month that Kelly was close to re-signing with the Sharks and it would be a major boost for the club if the rumours turn out to be false.