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The Newcastle Knights will let Beau Scott leave the club at the end of the season.

The Parramatta Eels have signed Beau Scott for the next three seasons after the Newcastle Knights agreed to release the back-rower from his contract beyond season 2015 on compassionate grounds.

"Beau has been an outstanding contributor to our Club since his arrival but genuine compassionate matters have forced Beau to return to Sydney to be closer to family support," Newcastle's Chief Executive Officer Matt Gidley said.

"While we as a Club have done everything in our power to support Beau and his family over the last 12 months, we acknowledge that certain circumstances go beyond the reach of any employer. We wish Beau the very best for his future, both personally and professionally."

Read more about Scott's departure from Newcastle

Parramatta Chariman Steve Sharp said the Eels were happy to sign the 30-year-old to a three-year deal.

"Beau is a hard-nosed forward who is well-known as one of the toughest competitors in the game. Equally, he is a quality individual and we look forward to him being a positive influence at our club on and off the field," Sharp said.

"We have a talented but young roster at the Eels, and recruiting players like Beau will add valuable playing experience and leadership to our club."

Read more about the Eels' new signing