Newcastle’s million-dollar man Kalyn Ponga is set to return to five-eighth as Olympic Sevens convert Lachlan Miller inches closer to a move up the F1 from Cronulla to play fullback.

Knights coach Adam O’Brien confirmed on Tuesday that Ponga’s transition back to the halves - a role he briefly flirted with at the start of 2019 - has been in progress since a spate of concussions prematurely ended the skipper’s 2022 season.

Shifting Ponga from the No.1 jersey has prompted Newcastle to make fullback a recruitment priority throughout the off-season, with Miller and Tesi Niu their prime targets until the latter left Brisbane to link with Wayne Bennett’s Dolphins.

Cronulla have previously knocked back the Knights’ attempts to prise Miller, 28, out of the last year of his deal.

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But with established fullback Will Kennedy and rising youngster Kade Dykes already on the Sharks’ books, negotiations have continued and Cronulla’s stance on Miller has softened given the prospect of a three-year deal being presented by Newcastle, provided they can land him for this season.

Sources with knowledge of negotiations, who wished to remain anonymous due to direct involvement, have indicated a potential player swap has also been discussed by the two clubs. Cronulla officials have also met with other potential signings to fill Miller’s roster spot.

Sharks coach Craig Fitzgibbon has a huge opinion of Miller since he arrived at the club after representing Australia at the 2021 Tokyo Olympics, and the feeling is mutual given Cronulla backed the Coffs Harbour product’s code-switch.

But with Miller approaching his 30s with a young family and an extended offer in Newcastle, a move could be finalised as early as next week pending the Sharks ability to land a replacement player - not necessarily a fullback.