Mitchell Pearce reportedly agrees cut-price one-year contract extension with Knights

Mitchell Pearce has reportedly agreed to a cut-price one-year contract extension with the Newcastle Knights.

Fox Sports reported the looming deal on Tuesday, with Pearce off-contract beyond this season. The deal, locking him in until the end of 2022, will reportedly be finalised within the next 48 hours and announced before Friday's round one clash against the Bulldogs.

On a base salary of about $900,000 this year, with potential bonuses that can push him well past $1 million, Pearce is looking at a pay-cut of about $300,000 next season, according to Fox Sports.

Pearce was at the centre of a major pre-season controversy, losing the Knights captaincy after a 'sexting' incident involving a female staffer. His wedding was also cancelled amid the furore.

Pearce arrived at the Knights in 2018, forced out of the Roosters after the club signed Cooper Cronk.

He has played 297 NRL games by age 31. He was a 2013 premiership winner at the Roosters and has a Newcastle team that has the talent to improve on a one-and-done finals appearance last season, in which the Knights lost 46-20 against South Sydney in their opening match.