The NRL will reportedly put Newcastle up for auction after June 30 as it looks to offload the four clubs it has a financial stake in.
The Knights have been in the hands of the NRL since former mining magnate Nathan Tinkler exited the club in 2014, and are likely to be sold for somewhere between $10 million and $20 million according to Fairfax Media.
Any potential suitor would also have to buy out its $1 million debt, meaning the NRL would likely make a handsome profit for their two years in charge of the Hunter region.
The Wests Group Newcastle have long been considered the NRL club's likely next over, however they now consider themselves a last-resort option if no-one else puts their hand up to take control of the franchise,
"Somewhere there is an outcome, and we've been a consistent supporter since the Knights were formed in 1988," Wests Newcastle CEO Phil Gardner.
"In any year, we could have taken them over but we've never moved to even part ownership because we always thought of the Knights as a separate entity."
The revelations come following news that WIN TV owner Bruce Gordon is in negotiations with the NRL to buy 50 per cent of St George Illawarra from the NRL.