PLAYER manager Jim Banaghan has been stunned by news he's been dumped by Cam Smith, claiming he was negotiating a potential $3 million contract on the Australian captain's behalf.

Banaghan says the deal would have made Smith the highest-paid player in the NRL.

Smith will be in huge demand when his contract expires at the end of next season and Melbourne are attempting to re-sign the hooker before he goes to the open market.

The player has intimated he will broker his own contract extension with the Storm, reportedly worth $400,000 a season.

However Banaghan, who only learned of the supposed split while on business in England, said he was deep in negotiations with Storm officials about a $600,000-a-year deal which could potentially run until the end of 2014.

Had such a deal eventuated Smith would have become the first to reach the $600,000 mark since Anthony Mundine rejoined St George in 1998.

"I think we may be stuck in a bit of a legal quagmire here between Cameron and myself," Banaghan told The Sun-Herald from the UK.

"It's a surprise to me as I've been negotiating contracts with four other clubs.

"I'm in a bit of a pickle. He's had me working for him for the past six months talking to other clubs and bringing back offers to him.

"I've actually spoken to him about a $600,000-a-year offer Melbourne have been speaking to me about.

"It was with great bemusement that I read he was doing his own for $400,000. I'm sure when I get back to Australia this will all be sorted."

Banaghan said four rival NRL clubs - two of them Sydney-based - were trying to prise the classy hooker away from the Storm, who were offering terms for a three-, four- or five-year extension.

"He hasn't covered himself with a great deal of sensibility in coming out with his statements but I'll speak to Cameron privately about that," he said.

Bulldogs CEO Todd Greenberg said he had not made any inquiries about Smith's availability, instead saying he was excited about the acquisition of Brisbane hooker Michael Ennis from next year. However, he said Smith was a player of interest to the club.

"He's a quality player and we'd be mad not to have a look at him," Greenberg said.

Another Banaghan client, St Helens coach Daniel Anderson, has also been the source of speculation following renewed rumours that Matthew Elliott is on borrowed time at Penrith. Anderson will return to Australia next year after completing his commitments with the Saints.

Storm assistant Stephen Kearney, who has also been linked to the Panthers post, yesterday quashed the speculation, while Banaghan said there had been no approach from any NRL club about Anderson.

"I haven't spoken to a soul," he said. "I can categorically say I have never spoken to anybody from the Panthers in the last six months regarding anything, let alone Daniel Anderson.

"I have never rung them, nor received a call from an official, a sub-official or wannabe official. Daniel has planned a tour through America with his family, so he has no offers to come back and coach in the NRL at this stage."

Panthers CEO Mick Leary said there was no truth to rumours Elliott had been sacked on Friday night.

"I don't know where all these rumours and innuendo are coming from," Leary said, but stopped short of guaranteeing Elliott would see out the remaining year of his contract.

In other contract news, Cronulla's Greg Bird has been linked to Warrington and Wigan should he be barred from the NRL.