The Daily Telegraph reports the NRL received a letter from the former Newcastle Knights player instigating legal proceedings.
The newspaper also reports Jordan McLean, the Storm player responsible for the tackle, is being “personally pursued”.
McKinnon must use a wheelchair for life as a result of his injuries, and was paid $750,000 by the Knights to honour the two years of his contract after he was injured.
He is currently working in player recruitment for the team.
It is understood he will need up to $20 million to support his injuries for the rest of his life.
The possibility of compensation was understood to have been brought up in a meeting between McKinnon and NRL chief Todd Greenberg six weeks ago.
The case will be the first of its kind in rugby league if it proceeds.
