Linked with a potential move away from the Newcastle Knights in the pre-season, David Armstrong could find himself staying in Newcastle longer than expected.

Entering the team due to the injury to 2023 Dally M Medal fullback Kalyn Ponga, Armstrong has quickly become one of the best rookies in the NRL and has been a standout performer for the Knights.

Struggling to break into the team before this season, the 23-year-old fullback has been a key part of the club's success and a revelation in the number-one jersey.

However, despite his recent success in the fullback role, he remains off-contract beyond the conclusion of the season, and other clubs, such as the Leigh Leopards in the Super League, have shown interest in his services.

Speaking to The Newcastle Herald, coach Adam O'Brien revealed that the club have tabled him an offer to extend his contract beyond this season.

"There's an offer in for him and I'd like to think he's really happy here," O'Brien told The Newcastle Herald.

"It's been a whirlwind month for him but he's handled it really well and everyone's really proud of him.

"There'll be others looking at him for sure now but you'd like to think that loyalty will play its part.

"We've stuck with him and given him his opportunity so I'm hoping we can come to an agreement."

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O'Brien also disclosed that Armstrong could easily play in the team on the wing alongside Kalyn Ponga once the latter returns from the casualty ward.

In four appearances in first grade this year, he has scored five tries, provided one try assist, made 22 tackle busts and four line-breaks and averaged 172 running metres per game.

"He can play more than one position using that speed," O'Brien added.

"Guys that are quick can finish off some stuff and while he's not a big body, he's only had one full off-season with us."

While the Knights have tabled him a contract offer, it is understood that the club don't have much room in their salary cap for next season following the re-signings of Bradman Best, Dane Gagai and Jacob Saifiti.