Teenage rugby sensation Joseph Suaalii has opted to sit out of the AAGPS season with prestigious academy The King's School, with a three-year, $1.8 million contract on the line at Redfern, per The Sydney Morning Herald.

The 17-year-old is rated as the biggest league product since Kalyn Ponga, with the Rabbitohs hoping to have Suaalii join their senior squad by 2021.

Suaalii won't feature for King's in hope of avoiding any serious injury that could damage his future in the NRL, with his school allowing the decision despite the star prospect being on a $40,000-per-year scholarship.

"He's a young man with a big decision and we're happy to give Joseph and the family the time and space," Rabbitohs chief executive Blake Solly said.

The Year 11 student will still have the option to play for either King's or Souths in 2021, with Rugby Australia hoping any professional deal can be delayed as plans to secure Suaalii on a deal of their own.

Suaalii has already been backed as a representative for the Australian Sevens at next year's Tokyo Olympics should he choose to play the 15-man format.

A deal with RA would likely mean Suaalii would take a pay cut over a move to the Rabbitohs, with those close to him suggesting Souths remain in the front seat.

Wayne Bennett has kept a close eye on the young gun, backing his own ability to get the best out of star prospects.

"One thing I know about all of it is that if he comes to this club, there is no one more experienced than I am at bringing young players through the NRL," Bennett said at the time.

"Iโ€™ve brought that many young players through from my 33 years of coaching. They need good people around them and they need good clubs to come to and I think South Sydney know that.

"I donโ€™t think that, I know South Sydney provides all of that."