Parramatta are set to retain star playmaker Corey Norman on a $2 million three-year deal after clearing more than a $1 million in their salary cap for next season with the departures of Anthony Watmough, Nathan Peats and Ryan Morgan.

While Watmough agreed to retire due a career-ending injury and Peats and Morgan were released to enable the Eels to shed $570,000 from their salary cap and play for points against South Sydney on Friday night, the amount the club saved for next season is double that as the trio had already been paid 50 per cent of their contract money for 2015.

An increase in payments to Michael Jennings, whose contract is being subsidised this season by Sydney Roosters to the tune of about $300,000, will chew up some of Parramatta's cap space in 2016 and was making it difficult for the club to make Norman a competitive offer before this week's exodus.

It is believed Watmough's contract was worth $700,000 per season plus $200,000 in third party agreements that the Eels were told must be included in the salary cap, while Peats was on about $350,000 and Morgan about $140,000.