KEY POINTS:
The NZRU have put a big offer on the table and urged Luke McAlister to take his time before deciding whether to stay or sign with Toulouse or Munster.
Having lost their battle to keep Carl Hayman and Aaron Mauger in New Zealand, the New Zealand Rugby Union are desperate to keep the 23-year-old midfield back.
McAlister proved on last year's All Blacks tour that he is a potential superstar and is expected to put real pressure on Mauger to claim the No 12 shirt at the World Cup.
With Mauger off to Leicester next year, McAlister is shaping as a critical player in the post-2007 plans but he's off contract at the end of the year and has been offered big money deals by Toulouse and Munster.
But it is understood the NZRU and All Black coach Graham Henry have reasoned that while the €350,000-plus ($640,000) the European giants have offered is attractive, McAlister's development would be better served by remaining in New Zealand where there is greater desire to play with the ball in hand and promote gifted, attacking players.
At just 23, McAlister has time to establish himself as an All Black superstar and then name his price further down the track.
NZRU deputy chief executive Steve Tew said: "We have made Luke a very good offer and he is a player we are very keen to see stay in New Zealand. We know he has some off-shore interest and we have given him some space to make his decision."
The NZRU have not given McAlister a deadline and would be happy for him to leave his decision until October - the cut-off point for potential 2008 Super 14 players to sign.
The European clubs, though, can't be so lenient as they need a signature before June.
A recent report by French weekly sports newspaper Midi Olympique suggested Toulouse had already signed McAlister on a two-year deal.
But McAlister's father Charlie dismissed those claims and the Herald on Sunday has learnt that McAlister is also in negotiations with 2006 Heineken Cup champions Munster.
Toulouse have the bigger budget and are understood to have put €400,000 ($735,000) on the table in their efforts to find a quality replacement for French first-five Frederic Michalak, who is joining the Sharks after the World Cup.
Munster are just as determined to sign a high-profile All Black following the departure of Christian Cullen and the southern Irish province are willing to break the bank to do it.
Because of his relatively young age, marketability and considerable talent, McAlister can command top dollar even if his All Black career is in its infancy.
That value, though, could rise dramatically in the next few years if he fulfils his potential and, as is expected, the game in Europe is flooded with more cash as a consequence of either a breakaway competition or a massively expanded Heineken Cup.
Given the likely importance of McAlister to the All Blacks in the coming years, it would be a bitter pill for the NZRU to swallow if the talented youngster opted to leave now without ever having a decent run in the test side.
Used to seeing a steady dribble of veterans leave to play out their careers in more lucrative climes, they are now faced with the prospect of losing two of their linchpins, McAlister and prop Hayman, at an age when they would still have a huge part to play in the future of All Black rugby.
