Folau claimed he was unlawfully sacked because of his religion in May this year. RA maintains Folau breached the professional players' code of conduct with two social media posts condemning homosexuals to Hell and labelling as "evil" the legal recognition of transgender and intersex Australians. The parties released a joint statement, saying: "The Social Media Post reflected Mr Folau’s genuinely held religious beliefs, and Mr Folau did not intend to harm or offend any person when he uploaded the Social Media Post. "Mr Folau wants all Australians to know that he does not condone discrimination of any kind against any person on the grounds of their sexuality and that he shares Rugby Australia’s commitment to inclusiveness and diversity.

"Rugby Australia and NSW Rugby do not in any way agree with the content of the Social Media Post. Inclusiveness is one of Rugby’s core values and it welcomes all people to the game, including all members of the LGBTI community. "While it was not Rugby Australia’s intention, Rugby Australia acknowledges and apologises for any hurt or harm caused to the Folaus. Rugby Australia acknowledges and apologises for any hurt or harm caused to the Folaus. Similarly, Mr Folau did not intend to hurt or harm the game of rugby and acknowledges and apologises for any hurt or harm caused. Rugby Australia and Israel Folau joint statement "Similarly, Mr Folau did not intend to hurt or harm the game of rugby and acknowledges and apologises for any hurt or harm caused. Rugby Australia and Mr Folau wish each other well for the future. The Parties do not intend to comment further on the terms of their settlement as it is confidential." On the eve of mediation proceedings, Folau upped his compensation claim to $14 million in lost income and damages, and reiterated his desire for an apology and reinstatement.

Waratahs chairman Roger Davis said it was a "satisfactory resolution to a complicated situation". "The community will be divided over this but I've always been an advocate of mediation and I'm delighted they were able to reach a settlement that was satisfactory to both parties that will also enable us to focus on the game," Davis said. Loading Both the Waratahs and RA have taken out limited liability insurance but it remains to be seen how much will be covered by the policies. The news brings to an end an 18-month headache for RA and the NSW Waratahs - joint-respondents in the claim as his second employer - both of whom were under significant pressure from sponsors and commercial partners to take action against the three-time John Eales Medallist.