The Sydney Morning Herald has reported that young gun Kalyn Ponga will extend upon his current contract which will earn him $1.1million a season.

The deal will make the 22-year-old one of the highest-paid players in the game.

"Kalyn Ponga looks set to sign a mega-deal with the Newcastle Knights, worth about $1.1 million per year," Herald reporter Michael Chammas told Inside the NRL.

"He was contracted for next year with an option for 2022, and he will take up that option. The details of that extension are still being worked out, but it could be until 2025 so that will be a five-year extension worth about $5.6 million.

"It’s a huge boost for Newcastle because he is the kid they will build this club around. This is the most important signing for Newcastle in over two decades in Andrew Johns."

There had been fears that Ponga could leave the NRL all together and achieve an ambition to play rugby union for the New Zealand All Blacks, though Chammas still explained that this deal won't prevent the fullback from hopping codes in the future. 

“There was a lot of talk about Kalyn Ponga and his desire to play rugby union," Chammas said.

"If he signs until 2025, he will be 27 years old when he comes off-contract and will be at the peak of his powers.

"It would be a big risk for Kalyn to go to rugby union now in an All Blacks team that is settled and star-studded."