The South Sydney Rabbitohs will have to make a decision in the coming weeks on whether to trigger an extension for star recruit Latrell Mitchell.

Mitchell was the biggest story of the off-season, leaving the Sydney Roosters and signing with South Sydney on a one-year $600,000 deal in January.

According to the Sydney Morning Herald, the contract includes a club triggered clause for a second year worth $800,000, which must be triggered by April 30.

A number of factors are playing against Mitchell receiving top-dollar for his second year however. The premiership-winning centre has not had a successful move to fullback, being benched after an hour in Round 1 and moving back to the centre just under an hour during their Round 2 loss to Brisbane.

The 24-year-old's extension must be activated a month out from the NRL's potential return on May 28, with the suspension robbing Mitchell to prove to coach Wayne Bennett he is worth 'fullback money".

If Mitchell is fit and firing at fullback, $800,000 represents good value at pre-coronavirus market rates, but with Mitchell potentially moving back to centre and player contracts set to be reduced next season, the Rabbitohs will most likely renegotiate for a cheaper extension with Mitchell.

Shane Richardson, long-time powerbroker for South Sydney, publicly stated that the Rabbitohs would activate Mitchell's contract clause, but his departure from the club has clouded Mitchell's future.

Another factor that could play against Latrell Mitchell is the emergence of Joseph Suaalii. Suaalii is unable to play first grade until his 18th birthday in August, but is seen as a genuine fullback and has even attracted interest from Wallabies coach Dave Rennie to switch to Union. Suaalii has maintained his desire to remain in the NRL, however.

The uncertainty over Mitchell's future comes at a time of major upheaval at South Sydney. Richardson has left the club after reportedly receiving a large payout while Wayne Bennett has confirmed next season will be his last with his assistant, Jason Demetriou, will take over after signing a deal to become head coach from 2022 to 2024.