North Queensland Cowboys football boss Michael Luck has confirmed that this year will mark Chad Townsend's last season at the club as he looks set to return to Sydney.

Off-contract at the end of the season, Townsend's future has been clouded in uncertainty as he enters the final few years of his rugby league career before deciding to hang up the boots.

Despite being a vital piece of the North Queensland Cowboys' attack, the club has now confirmed that there will be no space for him next season as a frontrunner emerges for his signature.

“Chad is a champion bloke, he is so professional and he understands how this game works,” Luck told The Courier Mail.

“We told Chad last week that there would be nothing here for him unfortunately with the salary cap.

“We brought him here for three years to do a job and he has a chance to finish on a really good note."

As he leaves the Cowboys at the end of 2024, Towsend has caught the interest of several clubs, such as the Canterbury Bulldogs and Super League outfits, such as the Catalans Dragons.

However, The Courier Mail understands that the Sydney Roosters are set to win the race for his services as they look to find a veteran playmaker to help mentor Sandon Smith and Sam Walker once Luke Keary hangs up the boots at the end of the season.

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A premiership-winner with the Cronulla Sharks, the playmaker was signed by the Cowboys at the start of 2022 and has revitalised his career after previous stints at the Sharks (2011-13 and 2016-21) and New Zealand Warriors (2014-15 and 2021).

“He has mentored our younger blokes and done a great job, Tom Duffy is shooting the lights out in the Queensland Cup," Luck added.

"Jake Clifford is a more mature player since coming back and Tommy Dearden is now an Origin player, so we can't have asked anymore of him.

“The level of maturity and calmness he has brought to our team over his team here has been amazing. We are a much better club for having him as a part of it and we are a better team when he is on the park.

“Chad has been a great leader, so we were very lucky to have him here.”

SYDNEY, AUSTRALIA - MARCH 14: Chad Townsend of the Sharks passes during the round one NRL match between the St George Illawarra Dragons and the Cronulla Sharks at Netstrata Jubilee Stadium, on March 14, 2021, in Sydney, Australia. (Photo by Matt King/Getty Images)

While he has enjoyed a successful stint with the Cowboys over the past three seasons, Luck revealed the reasons behind him not being given a contract extension.

The club's football boss confirmed that his departure comes as the team aims to ease salary-cap pressure and is hoping to promote younger playmakers at the club, such as Tom Duffy, Jake Clifford, and Jaxon Purdue.

“There were a few factors with Chad (leaving)," Luck continued.

“Salary cap was one of them, but we are confident in our young halves, they have served an apprenticeship and we feel guys like Tom Duffy, Jake Clifford and Jaxon Purdue are ready to take the next step.

“Tommy Dearden is one of the best young playmakers in the game. It will be sad to see Chad go, but we are grateful for his time here and hopefully he can finish on a good note here.

“If you had 30 guys in the squad with Chad Townsend's attitude, you wouldn't lose many games.”