Dragons, Panthers lead Folau race

Israel Folau ... plenty of suitors if he decides to head back to NRL. Source: WILLIAM WEST / AAP

St George Illawarra and Penrith have emerged as the front-runners to lure high-profile code-hopper Israel Folau back to rugby league.

When Folau joined the NSW Waratahs this year there was speculation he had already done a deal with Canterbury-Bankstown to return to rugby league next year.

But a source says the Dragons and the Panthers are Folau's main options in rugby league.

Folau is expected to be named in the Wallabies' initial 25-man squad on Sunday for the British and Irish Lions series, which could see his market value increase.

Waratahs coach Michael Cheika is optimistic Folau will re-sign with the ARU and NSW.

"I'm happy with the negotiation from our end," Cheika said of the Waratahs' offer.

"It's always interesting when there is two parties involved, but I'm sure we will work it out."

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