The Melbourne Storm are reportedly resigned to losing Ryan Papenhuyzen to rugby union at the end of 2026.

The star Storm fullback is off-contract at the end of 2026 - the same time as the rebel R360 competition is set to launch - and was one of the first players to be linked with the competition when talks of a raid on the NRL began.

He isn't the only player in the sights of the Saudi Arabian-backed competition, with teammate Cameron Munster becoming the latest to be added to a shopping list that includes grand final opponent Payne Haas and New South Wales State of Origin winger Zac Lomax among others.

Papenhuyzen may be one of the most likely players to make the jump, and with Melbourne having Sua Fa'alogo waiting in the wings, journalist Brent Read told Fox Sports' NRL 360 that there is now a school of thought in Melbourne which could see Papenhuyzen released immediately.

Ryan Papenhuyzen is the other big one, all the talk about R360, if he is going to go to R360 at the end of next year,” Read said.

“I think there's a school of thought that maybe if you want to go to rugby, go now... they think he is going to R360 at the end of next year.

“I don't think Paps has had his best year, I think we can all see that. I think he has looked down all year, I can even say he has looked distracted at times.”

While the competition doesn't start until the end of 2026, it'll be a major distraction for any players who have signed on out of the NRL, with there being a small gap between the end of the next NRL season and launch of R360.

It's understood all players entering the intial draft will need to complete fitness tests by December this year, something NRL clubs would likely need to tick off for any contracted players.

As it stands, the competition is still ironing out their details and financing, with the NRL dropping threats against players who sign up, and seven major rugby union boards determining on Wednesday that any players who join the breakaway competition will be ineligible to play international matches.