Ivan Cleary appears set to join his son at Penrith Panthers after he was released from Wests Tigers and replaced by Michael Maguire.

Cleary, 47, was contracted until 2020 but the Tigers opted to release the head coach from the final two years of his deal amid reports of a move to NRL rivals the Panthers.

While initially dismissing speculation in August that he was poised to link up with his son and star playmaker Nathan in Penrith, Ivan is now free to return to the Panthers, who sacked him in 2015.

"On behalf of everyone at Wests Tigers I would like to thank Ivan for the work he did during his time at the club," Tigers chair Marina Go said in a statement on Sunday. "Ivan oversaw a period of significant change at Wests Tigers and his work will leave a positive impact on the club."

Cleary's replacement is former South Sydney Rabbitohs boss and current New Zealand head coach Maguire.

Premiership-winning coach Maguire joins the Tigers on a three-year deal, while the 44-year-old will also continue in his role with the Kiwis.

Maguire led the Rabbitohs to NRL glory in 2014 before leaving in 2017.

"On behalf of everyone at Wests Tigers I'd like to welcome Michael to the club," said Go. "Michael has had success at the highest level and we look forward to having him as a part of Wests Tigers for at least the coming three seasons.

"I'd like to thank our stakeholders and Members for their patience during this process," she said. "This was a situation not of our making but I'm proud of the professional manner that the club has conducted itself and I believe we're now in a very strong position to move forward over the coming years."

Maguire added: "The biggest appeal in taking on this role is being able to work with the leadership that has been built on and off the field at Wests Tigers. It's one of the biggest clubs in the NRL and I want to take it to long-term success."