Parramatta reportedly want to deliberately break the NRL salary cap in order to sign Israel Folau and have asked the ARL Commission for permission to do so.
The Eels have put in a special request to the game's governing body to exceed the $5 million cap by $AU400,000 so they can fit the AFL convert onto their books, according to News Ltd.
The Eels' cap would then be reduced by $400,000 the following season.
Over the two seasons Parramatta would spend the same amount on players as each of the other 15 NRL clubs are allowed.
Eels boss Ken Edwards met with ARLC Chairman John Grant last week to discuss the propsal, says the newspaper.