Lee ended his 16-month injury-enforced break from playing when he turned out for the Knights reserve-grade side in their 30-4 win over Wests Magpies at Wyong.

The 29-year-old winger only played the first half but Knights coach Adam O'Brien said Lee had got through the game unscathed.

"He ticked every box that we needed from him," O'Brien said of Lee after reviewing the game.

"He only played 40 minutes, which was always part of the plan because he'd been out for so long.

"But in that he had a try assist, he came in with a really big defensive read, to jam in and stop the play, and he also got up to take a real 'speccy' high-ball catch."

Lee's appearance, his first since he debuted for Queensland in November of 2020, was a significant milestone on his long road back from a foot fracture he sustained during training before the 2021 season.

He has been named in the 24-man squad for the NRL game against Penrith on Saturday, but is not expected to feature unless someone withdraws.

O'Brien said he would prefer to have Lee play 80 minutes in NSW Cup before returning to first grade.

"But if something was to happen this week with the rest of the squad, I'd have no hesitation in putting Edrick in," the coach said.

"But if we get to choose the right timeline, I'd like to see him play another game in NSW Cup.

"And having said that, Dom Young and Enari Tuala are in a winning team at the moment and they're certainly doing their bit."

Tuala, who featured in all but one of Newcastle's 26 matches last season, said Lee's return would create "healthy" competition among the outside backs jockeying for a limited number of first-grade positions.

"We've got a lot of depth in our team and our outside backs," he said. "It's something we've lacked in past years. It's definitely healthy."

In addition to Edrick Lee, Hymel Hunt - who suffered a PCL injury to his right knee in the club's first trial in mid-February - will also come back into selection calculations.

His injury did not require surgery and while initially described as a 12-week layoff, he is likely to return sooner.

Brayden Musgrove, who scored a try in the NSW Cup match, is another set to be in the mix.

The 24-year-old played seven NRL games last year and like others just outside the NRL side, will benefit from having the resume-grade competition back up and running this season.

Tuala, the Knights' leading try-scorer the past two seasons, nabbing 13 in 2021 and 11 the year prior, said the playing group was eager to test themselves this week against reigning premiers Penrith, who beat the Dragons 20-16 last week and Manly 28-6 in round one.

"We've had a great start but a tough game this week. They've been the top team the last two years, so it will be good to get a hit out against them early in the year," Tuala said.

Panthers forward James Fisher-Harris has been named to play despite suffering a shoulder injury last week while halfback Nathan Cleary is listed on an extended bench but is not expected to play. Winger Brian To'o is out with a knee injury.

"They've still got a lot of players to worry bout, but I'm keen ... to see where our boys are at," Tuala said.

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