Souths winger Dane Gagai has reportedly been offered to the Parramatta Eels as they try to manage their salary cap.
Gagai, who has played 206 NRL games for the Broncos, Knights and Rabbitohs, declared last week that he is willing to take a pay cut to allow the club to re-sign Reynolds.
However, Channel 9's Danny Weidler reports that if Adam Reynolds stays at the club, Gagai could still be forced out.
Reynolds' future has been the centre of speculation, with his agent Steve Gillis declaring last week that unless the Rabbitohs increase their offer to a two or or three-year deal, he will likely depart the club.
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Weidler said on the Big Sports Breakfast that the Rabbitohs need to relieve salary cap pressure in some way.
“I think that if Reynolds is there, the way Souths have explained it to me, there is no Dane Gagai,” he said.
“If he stays, Dane will be elsewhere and there will be a stack of clubs looking at him. He’s been put to Parramatta. Early indications I’ve been getting, Brad Arthur wasn’t that keen on getting him. He won’t come cheap. He is a quality footballer.
“He may struggle to stay at Souths unless they get some relief in their cap. I did speak to Steve Gillis [Reynolds’ agent] about that and still word is no-one is budging. Sooner rather than later clubs will come knocking and try to sign Adam Reynolds up. I think there is a real stalemate... but Souths are very much against singing older players on longer deals.
“They want Adam Reynolds to do what John Sutton did and go year-by-year. Their belief was if it is good enough for John Sutton it is good enough for Adam Reynolds.”