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Newcastle have released the NRLW's best player from the final three years of her contract, allowing the star No.1 to return to Queensland for personal reasons.

The NRLW's best player is officially a free agent after Newcastle agreed to release star fullback Tamika Upton on compassionate grounds.

The Knights on Thursday reluctantly agreed to release the Jillaroos No.1 from the final three years of her contract, citing family and personal reasons.

Upton, whose family remain in Rockhampton, is expected to return home to Queensland.

Brisbane and Gold Coast would be the most obvious front-runners for the 27-year-old's signature, along with North Queensland. 

The Queensland star previously played for the Broncos in the early seasons of the NRLW, while living on the Gold Coast.

Interest from rugby sevens is also possible.

"The Newcastle Knights will always have a special place in my heart," Upton said in a statement.

"This has been very difficult for me, because of how much I have loved representing the Knights and being part of the Hunter community.

"I am very grateful to (CEO) Philip Gardner and (football boss) Peter Parr for their understanding and support. 

"I'm very proud of what we have been able to achieve together over the past three years."

Upton won premierships playing fullback for Brisbane in 2019 and 2020, before moving to Newcastle in 2022.

She took the Knights to titles in her first two seasons at Newcastle, named player of the grand final in both victories.

Upton inked a five-year deal with the Knights last April that was meant to see her remain in Newcastle until the end of 2027.

But she had flagged a potential desire to return home this season, before that request was officially granted on Thursday.

There is no suggestion of any animosity between her and the Knights, while Newcastle are expected to go to market with significant salary-cap space now free.

Upton's exit comes after the Knights had already lost powerful prop Caitlan Johnston to Cronulla for next year.

"Tamika has been an incredible contributor to the success of our NRLW team in recent years," Parr said.

"Whilst we are disappointed to see Tamika depart the club, she leaves this community with unforgettable memories, for which we will be forever grateful, and we wish her the absolute best for the future."