Parramatta will be allowed to play for NRL competition points after the departure of hooker Nathan Peats got them under the salary cap.

The NRL confirmed in a statement on Thursday afternoon that the club was now salary cap compliant and will be able to play for points against South Sydney on Friday night.

The Eels shed Peats, Anthony Watmough and Ryan Morgan from their books after the NRL said the club was $570,000 over the salary cap this year.