The NRL has ended months of speculation by confirming an agreement to sell Newcastle Knights to Wests Group.

Saturday’s announcement means the NRL’s ownership of the Knights, which they assumed when former mining magnate Nathan Tinkler departed the scene three years ago, is finally drawing to an end.

“We always said future ownership needed to be good for the club, the community and the game and we’ve secured that outcome through this agreement with Wests,” NRL CEO Todd Greenberg said.

“When the NRL took over the Knights in 2014 we needed to secure the financial future of the club and then deliver the best possible ownership to run the club into the future.

“Wests are ideal owners of the Knights given their strong Rugby League heritage and their strength in the local community.”

The NRL said the agreement with Wests Group would see them inject up to $10 million in a centre of excellence for the premiership strugglers, who are staring down the barrel of their third-successive NRL wooden spoon after slumping to a 28-4 defeat to the Roosters on Friday — their 16th loss for the season.

The consortium will also inject $2.5 million into grassroots rugby league over the next five years.

Before the sale is ratified, Wests Group’s 120,000 members will be asked to vote on the takeover.

Should the vote be favourable, the group would begin a transition period with the NRL in August with completion and 100 per cent ownership on October 31.

“Our fans have been unbelievably loyal and supportive during a tough period but I think this agreement will signal the start of a new era for the Knights,” club CEO Matt Gidley said.