Sam Burgess’s high profile move back to South Sydney Rabbitohs has stalled, as it will take the NRL side over the salary cap.
The Sydney Morning Herald is reporting that the NRL have refused to register the deal, despite the 2014 Grand Final winners releasing Dylan Walker from their playing staff this week.
Burgess quit rugby union earlier this month in favour of a return to Souths on a three-year deal believed to worth around $1.5million (£717,000).
However, with the NRL failing to ratify the deal, the Rabbitohs will be forced to release more players from their roster in order to make room for the 26 year-old.
Chris McQueen is being linked with a move to Penrith Panthers which could free up room on the cap for the 2014 Clive Churchill medal winner.