The Waratahs have re-signed one forward, lost another and will hold talks on Wednesday with a third, as the Super 14 rugby player merry-go-round gathers momentum.

NSW announced on Tuesday they had re-signed emerging 20-year-old lock Kane Douglas for two years.

On the debit side, they lost highly regarded 21-year-old prop Dan Palmer to the Brumbies.

Wallabies hooker Adam Freier, who hasn't played yet this season following back surgery and has been linked to Melbourne, will meet Waratahs coach Chris Hickey on Wednesday.

Hickey didn't expect to get a decision from Freier on Wednesday, but would like to keep a player he described as "an important part of the Waratahs for probably seven or eight years, both on and off the field."

"We'll sit down and have a look at where his future might be heading," Hickey told AAP.

Hickey said he was comfortable with where the Waratahs were in their contract negotiation, whilst admitting they could be a distraction.

"We're well advanced at retaining all the players that we're looking to retain," Hickey told AAP.

Hickey was happy to retain the services of Douglas, who revealed he had at least one other suitor among the Australian Super franchises, having spoken to Melbourne Rebels coach Rod Macqueen.

"I gave it (Melbourne) a bit of thought, but deep down I probably wanted to stay, I like it here," Douglas told reporters on Tuesday.

"My mum and dad just moved down recently (from Yamba on the NSW far north coast). I like the coaches and the players here, I think we've built a good team."

Maintaining the family theme, Douglas is living in the unit of his older brother Luke, the NRL Sharks' 2009 player of the year.

"I have it pretty easy, I live with my older brother and I don't pay much rent," Douglas said.

"Luke has come and watched me in the last two weeks, and then I went and watched him on Saturday, it's good, I always go to his games whenever I can."

On a Junior Waratahs professional contract at the start of this year, Douglas is being upgraded after a string of strong displays in four consecutive starting appearances.

"He's worked really hard and his performances in the games he's played have been terrific," Hickey said of Douglas.

Having already played on the likes of Springboks star Victor Matfield, Douglas could line up against Wallabies stalwart Nathan Sharpe in this Saturday's clash with the Force.

"It will be good, he's a good player, to be honest, I just go out there and play my own game and then if I get a chance to go up against him, maybe put a hit on him," said Douglas, who doesn't consider himself a Test prospect yet.

Hickey was philosophical about losing Palmer, who has been unable to break into the top 22 this year behind Test props Al Baxter, Sekope Kepu and Benn Robinson.

"He felt that there was perhaps an opportunity for him with the Brumbies that perhaps wasn't going to be available at the Waratahs for at least 12 months or so," Hickey said of Palmer.

"I'm disappointed to see him go, but I understand his position and certainly wish him the best."

Hickey remained optimistic Test back rower Wycliff Palu would be available for Saturday's game with the Force in Perth after being rested from training early in the week after straining his hamstring against the Lions last Friday.

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