Newcastle have agreed to release NRLW star and Jillaroos fullback Tamika Upton on compassionate grounds following the 27-year-old's request to return home to Queensland.

The Knights confirmed the news on Thursday, citing "long and careful consideration" on granting the exit of their two-time premiership player and 2023 Dally M Medallist "due to family and personal circumstances".

"Tamika has been an incredible contributor to the success of our NRLW team in recent years," director of football Peter Parr said via a club statement.

"Whilst we are disappointed to see Tamika depart the club, she leaves this community with unforgettable memories, for which we will be forever grateful, and we wish her the absolute best for the future.

Upton played three seasons with the Knights after crossing from the Broncos ahead of the 2022 season.

After Upton approached the club earlier this week Knights teammate Simone Karpani was staunch the club would rebuild, but that the news was "unfortunate"

"I am going to miss Tamika, she is a great player and person. I wish her all the best," Karpani told AAP.

"But it doesn't (mean it's over). Tamika is an amazing player, but she is one player."

Via the club statement, and in her own post to social media, Upton paid tribute to the successes through her stint in Newcastle.

"The Newcastle Knights will always have a special place in my heart," she said.

"This has been very difficult for me, because of how much I have loved representing the Knights and being part of the Hunter community.

"I am very grateful to Philip Gardner and Peter Parr for their understanding and support, I'm very proud of what we have been able to achieve together over the past three years."