The rugby star earned 20 test matches for the Kiwis before changing allegiance to Samoa.
The NRL's authority has stated that participants who join the “counterfeit” R360 league will be barred for 10 years.
The proposed competition, scheduled to begin in late 2026, is hoping to draw players from union and league with substantial agreements and a slimmed-down fixture list.
Top National Rugby League athletes have allegedly been contacted by the breakaway group, which will feature six to eight men's sides and four women's sides operating from key urban centers globally.
Samoa's the rugby star, who plays for New Zealand Warriors in the competition, has confirmed he has had discussions with the breakaway league.
Papenhuyzen, Zac Lomax, Payne Haas and Gray are also believed to be considering joining R360.
A group of rugby union countries, such as Australia, recently declared a prohibition on players joining R360 appearing in test matches.
“We heard our franchises and we've taken firm action,” stated Australian Rugby League Commission chief the official.
“Regrettably, there will always be entities that try to exploit our sport for monetary profit.
“They avoid funding in development systems or the advancement of talent. They simply exploit the hard work of existing bodies, jeopardizing careers of financial loss while benefiting financially.
“Essentially, they are, copying the game.”
The organization is established by ex-England star Tindall and supported by independent financiers.
Subsequent to the prospective rugby union prohibitions were announced last week, it commented: “We seek to cooperate together as integrated into the worldwide fixture list.
“The competition is structured with bespoke schedules for men's and women's teams and the organization will release all players for test matches, as included in their agreements.”
The new league will seek approval for its proposals from World Rugby, the sport's administrative organization, at its council meeting next year.
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