Paul Gallen will take a pay cut to remain at Cronulla in 2017.
Gallen confirmed on Thursday an offer had been tabled for him to sign on for a 17th NRL season with the club.
He will look to finalise the negotiations within the next fortnight.
However he has admitted his next deal was worth nowhere near as much as his current one, which is reported to be around $650,000.
"I understand that and I totally accept that," he told the Triple M Rush Hour.
"I've sat down with Flanno and spoken about that. It's a significant haircut - put it that way."
The timeline the Cronulla and NSW Origin captain has placed on himself means whether the Sharks go onto win their maiden premiership in 2016 will have no bearing on his future.
However he did confirm that while the one-year extension would likely be his last in the NRL, he may consider heading to the English Super League.
"I've always wanted to go overseas," he said.
"I've always wanted to do that so I think I might weigh up that option."