The NRL has told the Parramatta Eels they will be able to play for premiership points while five officials pursue legal action amid the salary cap scandal.

However an NRL spokesman has said the league's final decision on the Eels' points deductions is yet to be made, effectively reserving the right to strip the club of further points earned later in the season.

"As we said from the outset, this is a preliminary decision and the club now has an opportunity to respond," the spokesman said.

"Once the club's response is considered, the NRL will make a final determination on the penalty which may be the same or it may change.

"It is important to note that no final decision has been made.

NRL's proposed sanctions on Eels Fined $1 million

Fined $1 million Docked all competition points accumulated this season

Docked all competition points accumulated this season Club will be unable to gain points until it complies with the 2016 cap

Club will be unable to gain points until it complies with the 2016 cap Eels stripped of 2016 Auckland Nines title

Eels stripped of 2016 Auckland Nines title Chairman Steve Sharp, deputy chairman Tom Issa, director Peter Serrao, chief executive John Boulous, football manager Daniel Anderson must show cause why their registrations should not be cancelled

"The club can accrue points while the breach process is ongoing but the NRL will determine whether those points are retained in its final determination."

The Eels are still required to become compliant with the league's salary cap, but Anthony Watmough's proposed retirement on medical grounds could be a solution.

The NRL released preliminary findings on Tuesday concluding the Eels had exceeded the salary cap by more than $570,000 this year, and by $3 million since 2013.

It proposed to strip the Eels of the 12 competition points earned in 2016, fine the club $1 million, and remove five officials including chairman Peter Sharp.

The five Eels officials are fighting the NRL's bid to deregister them over salary cap breaches at the Supreme Court in Sydney.

Representatives from the NRL contacted Parramatta on Thursday night to advise the club could play for points while the court action continues.

The court had made an interim order on Tuesday preventing the NRL from imposing limitations on the five officials' duties.

Eels want quick hearing, NRL needs more time

The Parramatta officials had wanted a hearing held quickly on their threatened deregistration so the team's ability to play for points would not be jeopardised.

At a further hearing on Friday Eels barrister Arthur Moses SC said he wanted the matter finalised next week, but the NRL's barrister Lachlan Gyles SC said he needed more time.

"They brought this on ... If they want to start it, they should finish it rather than this dragging on," Moses said.

Gyles said the temporary injunction imposed by the court on Tuesday is not needed and is confusing.

The injunction has been extended until Monday and a date for a hearing challenging the proposed NRL deregistration of Eels' officials is expected to be set next week.

Gyles added he was happy for the Eels to have their day in court but needed more time to prepare the NRL's case.

"The NRL case involves some complexity," Gyles said.

"This case is in a way a sideshow ... this is not the main game your honour."

The Eels' next match is on May 13 against South Sydney.