A new twist has emerged in the contract situation that surrounds Greater Western Sydney free agent Josh Kelly.

As reported by 7 News' Tom Browne, Kelly's famous eight-year, $8 million player-option clause is reportedly more of an offer rather than a secured option in favour of the gun midfielder.

This would mean that the Giants can withdraw the offer from their negotiations, however the lucrative contract is understood to remain placed on the table and awaiting Kelly's decision.

The 26-year-old is one of the more coveted names ahead of this year's exchange period, with the likes of Marcus Bontempelli, Zach Merrett and Patrick Cripps all recently signing new contract extensions with their respective clubs.

North Melbourne are tipped to be the leading rival to land Kelly's signature, but recent reports suggest the Sandringham product is likely to remain in New South Wales.

Essendon recently withdrew their name from the race for Kelly's services as the club places a greater focus on their current crop of onballers, with in-form midfielder Darcy Parish joining Merrett in recently recommitting to the club.

Kelly is just one of four remaining restricted free agents this year, joining St Kilda gun Jack Billings, Adelaide midfielder Matt Crouch and Sydney had-nut George Hewett.

The flashy midfielder has been in red-hot form for the Giants across the past two months following a slower start for his standards.