Brisbane's Courier-Mail newspaper has reported that Milford, who joined the Knights in April on a deal until the end of this season, "is in the advanced stages of finalising terms on a two-year contract" with the Dolphins, who will enter the NRL in 2023.

The Dolphins will be coached by Wayne Bennett, who has a close relationship with Milford dating back to their days together at the Brisbane Broncos.

O'Brien said on Friday he was hopeful of retaining Milford beyond the end of this campaign.

"I've expressed a desire to Anthony himself that I classify him as a real valuable part of our team," O'Brien said.

"I'd like to see it in the future. We've got a good relationship ... I'd love for him to stay."

If, however, Milford has confirmed his decision to move on, O'Brien will have to consider the short-term value of continuing to pick him for Newcastle's remaining seven games of the season, and weigh that against the potential benefits of reinstating Jake Clifford to Newcastle's No.1 team.

Clifford is under contract to the Knights next season but has played in only two of Newcastle's past nine NRL matches.

He played three consecutive games in NSW Cup and was again named to play in reserve grade against Blacktown Sea Eagles last weekend, but was a late scratching after contracting COVID.

It is expected he be available for Friday night's clash with Sydney Roosters at McDonald Jones Stadium.

Clifford and Adam Clune, who started the season as Newcastle's first-choice halves, are both contracted for next year and might again have to handle the playmaking responsibilities in 2023, depending on whether the Knights are successful in their quest to sign an experienced halfback.

After Newcastle's 42-12 loss to Manly on Saturday, their already-slim finals hopes would appear dead and buried.

Yet when asked at the post-match press conference on Saturday whether he would start looking towards next season, O'Brien replied: "I don't want the team to look at next year now, and I certainly won't be either."

He added that Newcastle's priority was "to be better against the Roosters" than they were against Manly.

"I'm more focused on that, because that will help us long-term," he said.

"That will help us next year, if we get better next week."

The Knights scored a memorable 20-6 boilover against the Roosters at the SCG in round one, after Clifford scored a try and was named man of the match.

Since then he has played in only nine of their ensuing 16 games and at one point was given time off to deal with personal issues.