If there reports are true.
Drop him. Without delay. No reserve grade, no training with the team nothing. Tell him, he won't be considered for a release or recall whilst media are leaking updates on his contract.
Can teams refuse to release players for Origin too? I'd also consider refusing to release him for that. bye bye 150k appearance fee for you as well dick head.
I doubt he would ask for a release without first having another team lined up, so we should be straight up about the player we want in return and play hardball. No game time one way or another until payno decides he wants to pull his head in, or we get exactly what we want.
If we cave, we just open up for any other player in a rich vein of form throwing the same tanty. I can't imagine the other players would back him on this. If some of them do, well they should be next to go. Reyno and Capes should be all over this in the change room and nip it in the bud.