After turning down the original contract last year, ARU general manager Pat Wilson is hoping the new offer will convince winger Tuqiri to continue playing rugby union and not join former Wallaby team-mate Mat Rogers in defecting to rugby league.
"The main thing for us is to hear from Lote that he has a genuine desire to play for the Wallabies," Wilson told www.rugbyheaven.com.
"We're just doing some internal dialogue on the subject to work out where we stand.
"But it is fair to say we were interested in some comments over the weekend, which include that he is supposedly meeting with the Sydney Roosters and he may take a reduced deal to go back to league."
With Tuqiri still in South Africa on Super 14 duties until early next week, the former rugby league player would only confirm that he has been in contact with business advisor Les Ross, who has been handling all contract dealings.
"Les has been talking and has all the options ready for me," Tuqiri said. "We will sit down and have a look at them all next week."
While Tuqiri is yet to get on the scoresheet in the opening two rounds of the Waratahs season, the 27-year-old is confident his best form is just around the corner.
"Some of my decision-making wasn't the best and that is something I should improve on," he added.
"It is [about] repetition in training. We haven't done enough of it, especially for South African teams that kick a lot.
"I just have to get out on the training park and try and do that, get used to doing that - making the right decisions."