Maria Folau holds hands with husband Israel Folau as he leaves Federal Court on Monday. A settlement with Rugby Australia was reached on Wednesday.

Rugby Australia (RA) is likely to have agreed to pay out a "significant amount of money" to sacked Wallaby Israel Folau after marathon settlement talks brought an end to the damaging saga, a workplace law expert said.

After 14 hours of formal negotiations and countless hours of informal talks spanning three days, Folau and RA reached a confidential settlement, which included a written apology to each other for hurt and damage caused during the near-eight month controversy over Folau's anti-gay religious views.

Folau said he felt "vindicated" by the agreement, which did not include reinstatement but leaves the door open to him seeking another contract in Australian rugby.

RA boss Raelene Castle said the decision would give the game "certainty" heading into the new year.

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"The terms of the settlement are confidential but importantly Israel's legal claim has been withdrawn and whilst we were very confident in our legal position, this outcome provides certainty for Rugby Australia and allows us to avoid incurring ongoing legal costs and the risks and distractions of a lengthy trial," Castle said in a letter to RA stakeholders.

GETTY IMAGES Israel Folau has given no hint of what his future in sports will be.

RMIT professor of workplace law Anthony Forsyth said it was highly likely the deal included a hefty financial pay out for the 74-test fullback, who claimed he was sacked unlawfully because of his religion and wanted up to A$14 million in compensation, as well as an apology and reinstatement.

"Given that he upped his claim to $14 million last week you'd have to expect that a significant amount of money has been paid," Professor Forsyth said.

"It should also been borne in mind that although Rugby Australia apologised, they actually apologised to each other. That's a mutually agreed conclusion, so nothing much should be drawn from that."

Folau and RA issued a joint statement on Wednesday afternoon before Folau and his netballer wife Maria posted a video to his website claiming vindication through the result.

Sydney Morning Herald Rugby Australia and Israel Folau have agreed to settle following mediation with the governing body apologising to Folau. However, they have distanced themselves from the content of the infamous Instagram post.

"We are extremely pleased with the settlement reached today," Folau said. "With today's acknowledgment and apology by Rugby Australia, we have been vindicated and can now move on with our lives to focus on our faith and our family.

"Maria and I would like to thank God for his guidance and strength. Thank you to our supporters for their thoughts and prayers, in particular our families, our congregation as well as Martin Iles and the Australian Christian Lobby.

"We started this journey on behalf of all people of faith, to protect their rights of freedom of speech and religion.

"We now look forward to the federal government enacting the legislation necessary to further protect and strengthen these rights for all Australians."

Folau's unlawful termination campaign collected up to $3 million in donations through the Australian Christian Lobby. ACL director Martin Iles said donations would be refunded "on a pro-rata basis" and donors would be contacted in due course.

RA maintained it did not agree with Folau's social media post of April this year, which condemned homosexuals and other groups to Hell.

"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," the organisation said in a statement.

"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. Similarly, Mr Folau did not intend to hurt or harm the game of rugby and acknowledges and apologises for any hurt or harm caused.

JUSTIN MCMANUS/THE AGE Israel Folau prays with supporters and his wife Maria, far right, before the mediation with Rugby Australia.

"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."

Professor Forsyth said the joint statement was standard for cases in which confidential settlements were agreed upon.

"I was expecting that it would go all the way mainly because he had such significant backing from the ACL and other people on board with his cause," he said.

"I thought he was on a bit of a crusade to be proven right with that significant backing and I'm a little surprised that he's settled, but you can't really work that much out from the wording of the statement."

Folau claimed he was unlawfully sacked because of his religion in May this year.

RA maintained 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 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 Medal winner.

Since his move to rugby in 2013, Folau played 74 tests for the Wallabies and helped win a Super Rugby title with the Waratahs but his increasingly religious posts crossed a line, according to both organisations, with a comment in April 2018 saying homosexuals were destined for Hell.

Neither organisation disciplined Folau after that comment and RA came under heavy fire for not doing so. In October they re-signed him on a four-year deal worth $1.4 million per season, with no extra restrictions on his social media use.

Six months later he posted the Instagram and Twitter messages that led to RA issuing him a breach notice under the professional players' code of conduct. The organisation also announced it wanted to sack him, and convened a three-person tribunal that found he had committed a high-level breach and should be sacked.

Folau played his last test for Australia in 2018 and his last Super Rugby game in April.