Gold Coast and Collingwood will agree on a trade for the Suns' looming Ben King free-agency compensation not to be diluted.
Gold Coast is set to land Pick 7 as King heads to Hawthorn, with the seven-year deal worth more than $9 million landing in band one of free agency compensation.
However, the free agency model compensation is based on a net result, meaning if Pendlebury joined the Suns as a free agent, it would affect its overall selection.
The Pies champion's new deal in Queensland is a two-year playing contract, understood to be worth around $600,000.
"It would be (diluted) if he came in as a free agent," AFL football boss Greg Swann said.
"And again, it's to do with the (compensation) bands. I haven't seen his contract, but obviously (Scott) is on two years with x amount of money, so that would offset that.
"But having been through a few of these myself, Gold Coast will trade with Collingwood and give them a pick.
"And that way, their compensation isn't diluted."
Gold Coast's only selection in this year's draft is Pick 60. Their first (Melbourne), second (Carlton) and third (Port Adelaide) round picks are held by rival clubs.
Similar deals have included last year's workings with Brisbane and West Coast involving Brandon Starcevich and Oscar Allen.
Starcevich would've left the Lions as a free agent, but was traded to the Eagles, netting Brisbane Pick 19.
West Coast opted to broker a trade to avoid diluting its free-agency compensation pick from Allen's departure, who ironically joined Brisbane.
The same occurred when Luke Hodge headed to the Lions in 2017, and was traded for Pick 75.
The Lions protected its free agency compensation from Tom Rockliff's departure, who joined Port Adelaide.
