NRL strugglers Cronulla remain hopeful of signing former Parramatta star Tim Smith despite their offer being "withheld" while his Queensland club plays hard-ball.

Sharks chief executive Richard Fisk says a long-term offer was made to Smith but the Brisbane Easts club are standing in the way of the former Dally M rookie of the year heading south.

The talented halfback was registered with both the Brisbane Broncos and the Easts Tigers for 2010 and, while the Broncos have cleared him, the Queensland Cup side is yet to follow suit.

"Brisbane Easts have stalled it, they didn't want to clear him and (Smith's manager) David Riolo is discussing it with Brisbane Easts," Fisk told AAP on Friday.

"In the meantime we've withheld our offer, not withdrawn it, just withheld it until he gets clearance from Brisbane Easts.

"It's out of our hands and I just hope common sense prevails. It's a great opportunity for the kid."

A compensation package for the Broncos' feeder club is at the centre of negotiations but Fisk did not wish to put a figure on their asking price.

"I don't want to speculate on what their requests are but we're working through it," he said.

Cronulla are attempting to turn around a horror year on and off the field, but are unconcerned by Smith's history.

He was suspended by Parramatta in 2007 following several alcohol-related incidents and quit the NRL early in 2008 after announcing he suffered from bipolar disorder.

"Every comment about Tim has been fantastic and he's passed every test with flying colours," Fisk said.

"Let's remember the kid's got bipolar disorder and he's got medication for it and now he's OK.

"I think it's great to give someone like that another chance."

The 25-year-old headed to Wigan, where current Sharks captain Trent Barrett was then playing, to escape the pressure of the Sydney rugby league fishbowl and Barrett has given him a glowing reference.

"Trent was very positive in his comments," Fisk said.

Smith returned from Wigan this season hoping to win back a place in the NRL with the Broncos.

His signature would be a massive boost for the Sharks, who have lost a club-record 12 straight NRL games and struggled to find a quality halfback since the departure of Brett Kimmorley at the end of 2008.

Their No.7 in 2009, Brett Seymour, was sacked last year after a series of alcohol-related off-field indiscretions and has joined the Warriors.

Cronulla dropped Scott Porter and named journeyman John Morris at halfback for Monday's match against South Sydney.

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