Warriors hooker Issac Luke could be on his way to the Newcastle Knights.

The Newcastle Knights are reportedly closing in on the signing of veteran New Zealand Warriors hooker Issac Luke.

Off-contract Luke faces a difficult dilemma with the cash-strapped Warriors only able to present a modest offer due to salary cap restrictions.

National Rugby League rivals, Newcastle and the lowly Parramatta Eels, have shown interest in Luke, but the Knights are favourites for his signature.

Knights coach Nathan Brown spent time in camp with the All Blacks in Wellington last week and met up with Luke and his agent Bruce Sharrock, NZME reported.

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Luke, 31, has played 254 NRL games since debuting for South Sydney in 2007. The 37-test Kiwi international has been with the Warriors since 2016 and was a standout for the side this year as they qualified for the finals for the first time since 2011.

Should Luke join the Knights, he would be the third New Zealand hooker on the club's books joining Danny Levi and Slade Griffin, who suffered his fourth season-ending knee injury in July.

Nathaniel Roache was set to be Luke's deputy in the hooking role at the Warriors this season and eventually take over from him, but missed the entire 2018 campaign after back surgery.

Jazz Tevaga is also capable of playing hooker, but was predominantly used at loose forward this season for the Warriors. Should Tevaga re-sign, he could end up playing more minutes there next season after the retirement of club legend Simon Mannering.