South Sydney have withdrawn from the race to sign Test winger Jarryd Hayne from 2009.

The Rabbitohs released a statement on Monday saying they had begun looking elsewhere after it was reported Hayne was prepared to stay at Parramatta for less than his market value.

"We have decided to move in another direction after it became clear to us that Jarryd is likely to remain at Parramatta," Souths director of football Shane Richardson said in a statement.

"It's great to see a player remain loyal to a club and we wish Jarryd the best for his future at the Eels.

"We have a number of players within our ranks that we want to retain and that will be one of our priorities as we build up to the beginning of 2008, our Centenary season."

Souths had made no secret of the fact they were chasing the 19-year-old, whose father Manoa Thompson played for the Rabbitohs.

Reports had suggested the club was preparing a $2 million deal over five years.

But Hayne told News Ltd on the weekend: "Hopefully we can finalise something as soon as possible with Parramatta.

"I want to stay at Parra. It's where I was born and bred and where I've gained my start. I really don't see myself leaving.

"Right now, there's no reason to leave or go chasing money here or in England."

Brought to you by AAP © 2024 AAP