The Dragons have two roster spots left for 2025, with 28 players currently signed to their top squad for next season.
Sevens talent Nathan Lawson is expected to join the club following the conclusion of his Rugby Australia contract next month, but AAP understands he will fall outside of the top 30.
That will leave Flanagan with room to move and significant salary cap space left to continue the club's signing spree.
Flanagan explained the club's priorities were to sign a middle forward and a five-eighth or halfback following the decision to terminate the contract of captain Ben Hunt.
As it stands Flanagan's son Kyle and four-game rookie Lyhkan King-Togia are the Dragons' first-choice halves pairing heading into round one.
May appears the most attractive front-rower available after surprisingly being told he was free to leave by the Sydney Roosters following a standout 2024 season.
Terrell May takes the ball up with force against the Dragons in round 18 at Allianz Stadium. (Mark Evans/AAP PHOTOS)
But Flanagan is happy to leave May on the back-burner and see which other players could become available in the new year.
"We might leave one of those spots open until January or February, maybe even going into the season," Flanagan said.
"We saw last year when Corey Allan did his ACL, we needed (the flexibility) to get someone else in.
"We talk to a lot of players … It's like buying a house. You don't put bids in for all of them and we'll be similar with Terrell.
"We're at talks but whether it's at a point that we're putting offers in and so on, we'll see."
Flanagan, meanwhile, was confident Lawson could make a fist of a transition to league after a successful career in sevens.
Lawson played for Australia at the Paris Olympics and was named the Australian male sevens player of the season earlier this year.
Nathan Lawson streaks away for a try against Samoa at the Paris Olympics. (Dan Himbrechts/AAP PHOTOS)
"He's got one more tournament to go and I'd like to think when he comes back he'll be here," Flanagan said.
"He's big, fast and athletic. Go on 'Nathan Lawson' on YouTube and you'll see the tries he scores and the tackles he makes.
"He's a footy player and he'll adapt to league pretty quickly, he loves league and has watched it (his entire life) … he went to school with Cameron Murray.
"The transition will not be that hard for him, he'll play in the outside backs and I'm looking forward to him transitioning into an NRL player."
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