Matt Arthur, who has played three NRL games, will be able to talk to rival clubs with immediate effect after the blue and golds told the hooker he was free to leave at the end of this season.
In a statement provided to AAP, Eels CEO Jim Sarantinos said the club made the decision to allow the 19-year-old to explore his options given the "unique circumstances".
"Matt is a great young man and it was wonderful to see him make his NRL debut earlier this year," Sarantinos said.
"While we would love to see him stay at the Eels, we understand the unique circumstances involved with this request and our decision to grant permission to negotiate with other clubs is based on compassionate grounds."
The final year on the dummy-half's contract will be waived, allowing him to make a move elsewhere after a taxing period for the Arthur family.
Eels officials suggested that Arthur Snr's sacking in May, after over a decade at the club, took its toll on Matt.
That led to a conversation between Matt's management and Parramatta, who on Wednesday granted the teenager permission to seek a new home for 2025.
The young hooker was seen as a star of the future for the Eels after earning representative honours for the NSW State of Origin U19s side earlier this year.
Matt Arthur fires a pass out of dummy-half during an Eels pre-game warm-up drill. (Dan Himbrechts/AAP PHOTOS)
It marks the end of an era for the family given Matt and elder brother Jake grew up around Parramatta's training base, regularly rubbing shoulders with the Eels' first team.
Matt's NRL debut came six weeks after Brad Arthur was axed by the club, but the presence of both sons on the club's NRL roster had made the long-time coach a target of criticism.
The axed Eels coach, who has since joined Super League club Leeds on a short-term deal, was accused of nepotism in selecting Jake for first-grade action.
The playmaker was regularly booed by Parramatta fans and left last year to join Manly where his 2024 campaign has been restricted by injury.
Arthur Snr took charge of his first Leeds game last week, falling to a 20-12 defeat to Hull Kingston Rovers.
Parramatta's decision to allow the youngest Arthur to explore options for next year comes as Jason Ryles begins shaping the Eels' roster for his first season as coach next year.
Youngster Blaize Talagi remains a key priority for the Eels, who only have two players contracted beyond the end of next season.
Others including five-eighth Dylan Brown have contracts for longer, but have options in their favour that they must decider whether to take up.
17°C