TIMANA TAHU'S return to the NRL with Penrith is in jeopardy after mediation in his racial vilification case with Caleb Binge broke down over an article in The Sun-Herald on Sunday.
And in another twist, it has emerged that Tahu is yet to finalise a release from Parramatta and remains under the Eels salary cap for this season.
Tahu is understood to have agreed terms with the Panthers for a one-year, incentive-based deal but the NRL has advised the club that no contract for him will be registered until he resolves the racism dispute with Binge.
It has been more than five months since Tahu was accused of racially abusing the then 16-year-old during an Aboriginal knockout tournament at Woy Woy on the same weekend as last season's NRL grand final. However, it appeared a resolution was close following the appointment of Country Rugby League welfare manager Denis Moran as a mediator.
But Moran, an ex-Parramatta and Wigan halfback, said negotiations had broken down after The Sun-Herald interview with the dual international, which was headlined ''Penrith move makes sense: Tahu''.
''It was going fairly well but then a few things were said in the paper the other day and one party wasn't really happy with that, so we're back to square one,'' Moran said. ''I don't know how they read it but young Caleb wasn't happy about it, and everything has broken down.
''I am now trying to get them back speaking again because it is like a black cloud that will hang over the both of them until it is resolved.''
The Herald understands that the Panthers may announce the signing of Tahu today and he could begin training with his new team-mates immediately, but the chances of him playing in Friday night's match against the Eels at Parramatta Stadium are remote.
Eels chief executive Paul Osborne said the club would not stand in the way of Tahu joining Penrith but the terms of his release were still being finalised after he agreed terms for a two-year contract extension at the end of last season.
Tahu did not report for training when the Eels resumed in the pre-season and was initially given time off to resolve the dispute with Binge. However, he decided to quit after learning that new coach Stephen Kearney was unlikely to accede to a request to stay away until February.
He has since been training on his own and a number of clubs, including Newcastle and Cronulla, have been linked with the 30-year-old former Test and Origin winger, but the Panthers are the only ones to have shown genuine interest.
However, Osborne said he had received no approach from Penrith about a release for Tahu, who is included in Parramatta's salary cap for this season.
Despite the controversy, Eels captain Nathan Hindmarsh said there was no animosity towards Tahu from his former teammates. ''No hard feelings, definitely not,'' Hindmarsh said. ''It's the same situation with Jamie Lyon, I think. If people decide they want to move on, that's their decision.
''It hasn't affected the team. We're still playing strong and all that type of stuff. Our relationship is still the same.
''It will be good to see him back in the game. He's got a lot to offer to the game, and we're all happy for him if he does come back and play. I think he'll be good for them.''