Port Kembla District RLFC has applied to leave the Illawarra league and join Group 7 from next season.
The move, if approved, would enhance the club's prospects of re-entering a first-grade team in the competition, as well as maintaining its under 18s and reserve grade sides.
Port Kembla has not participated in first grade since 2007.
Port president Ben Fera believed the move would benefit the club short and long term.
In its application to the Illawarra District Rugby League for permission to enter Group 7, the club stated it withdrew from the first-grade competition due to a combination of financial pressures and lack of players.
"Whilst it was a regrettable decision at the time, it was one necessary to ensure the longer term future of our club," the application, obtained by the Mercury, stated.
"The time has come now for our club to seek a re-entry to first-grade football. 2012 saw our club return to reserve-grade competition, and whilst not an overwhelming success we did complete the season and won a number of matches with a team which had little time to prepare ...
"Our juniors, our supporters and our players all need a first-grade team to aspire to and to follow.
"Our fear is that if we do not field a first-grade side soon, we will lose many of our junior base who want to progress from a junior club to the same senior club.
"Our under-18s side made the semi-finals and proved that the club has a number of promising juniors coming through the ranks to one day play grade for the Mighty Blacks.
"Our club was very fortunate to have the support of the other Illawarra clubs in allowing us to compete in reserve grade in 2012.
"It has become apparent to our committee that we will not be able to secure the finances required to successfully re-enter the Illawarra Coal first-grade competition."
The Port Kembla committee also felt the club would not survive long term as a lower-grade club and that doing so would be to the detriment of the junior club.
Based on these thoughts, the committee decided to pursue an application to move to the Group 7 Rugby League competition for its senior club in 2013.
"We seek the support of the Illawarra Rugby League to make this move possible," the application read.
"We feel it is being made in the best interest of our club and in the best interest of rugby league."