The offer would be the biggest in New Zealand professional rugby history and it is believed that the move would be sweetened even more with Highlanders skipperJimmy Cowan also a reported target for the franchise.

It is believed the Blues want a top-class half-back to partner Carter but the contract negotiations with Cowan are not as advanced as Carter's talks.

The Blues seem intent on recruiting some big names but Southland CEO Roger Clark, chief of Cowan's Air NZ Cup side, had little time for the rumours that Cowan would play for Southland and the Blues.

He said: "Under the current rules, Jimmy couldn't do that. Because he is one of the Highlanders' senior players and they'd have first crack at him. But I suppose some sort of deal could be done.

"They are just talking about a franchise contract now and it all depends on several things, including what happens with the Air New Zealand Cup."

Dunning missed this season's Super 14 with an injury, and would provide a fillip for the Force after they lost the services of Matt Giteau and Drew Mitchell.

The Blues speedster suffered the injury on the tour of the United States and it will come as a blow to James and his region after he enjoyed a successful season last year, seeing the Blues reach the last four of the Heineken Cup.

He said: "We've had the results of the scan back and although I won't need an operation to repair the shoulder damage, I'm still not expected to be back on the rugby field for four months.

"It will be a case of working hard with the physiotherapist to try to strengthen the shoulder.

"I will have a rest for three weeks now and return to pre season training with the Blues, where we will begin the treatment.