The 27-year-old, contracted for 2024 on an estimated $750,000, informed the Bulldogs of his desire to focus on family and fighting this week and will continue to work with them on the details of his exit.
As at Tuesday afternoon, no official release request had been submitted to the club and the Bulldogs had not yet finalised any payout deal.
But Canterbury is unlikely to stand in Pangai's way as he pursues a release and are expected to confirm as much imminently.
Pangai has twice fought professionally and holds a 2-0 record, first defeating Gerico Cecil by technical knockout in December 2021 and then knocking Jerry Tupai out last December.
The mooted rugby league retirement continues a whirlwind year for Pangai, who was selected to make a surprise NSW debut in the State of Origin series opener.
He was dropped for the second game and has since struggled for consistent form with the 15th-placed Bulldogs.
At his best, Pangai was one of the most damaging forwards in the game.
Pangai burst onto the scene with Brisbane in 2016 after a decorated career in the Under-20s with Canberra.
Following a mid-season switch to Penrith, he was pivotal in their charge into the 2021 grand final, a victory he ultimately missed injured.
Pangai's exit would free the Bulldogs up to go to market as they continue their rebuild under coach Cameron Ciraldo.
Canterbury's other marquee front-rower Luke Thompson is off-contract at the season's end, with the Bulldogs in desperate need of starch in the middle of the park.