Wests Magpies are set to honour a pact made with Balmain when they merged in 2000 by agreeing to a deal that would enable their fellow foundation club to maintain a stake in Wests Tigers.

With the deadline for cash-strapped Balmain to repay a $5.4 million loan to the NRL due to expire on Thursday, there have been doubts over the future of one of the game's oldest and most famous clubs but Fairfax Media has been told Wests will not allow them to die and is prepared to offer the Leichhardt-based Tigers a 25 per cent stake in the joint venture.

Negotiations between the two clubs are continuing and are set to go past the March 31 deadline but it is understood they are close to reaching an agreement that would result in half of Balmain's debt being retired and the 116-year-old club having a further 10 years to repay the rest.

In return, the Wests Group - headed by the powerful Wests Ashfield Leagues Club - would take control of the Wests Tigers board by appointing five of the nine directors.