Wallabies flyer Israel Folau has not been disciplined for his anti-gay comments after meeting with Australia Rugby CEO Raelene Castle.

The Wallabies and Waratahs utility back caused a social media stir last Wednesday, over a now deleted Instagram comment in which he suggested that God's plan for gay people was "HELL…Unless they repent of their sins and turn to God."

At the time, Castle reiterated the views of Folau did not align with Rugby AU and NSW Rugby, promising to 'discuss the matter with him as soon as possible'.

Folau and his manager met with Castle and Waratahs boss Andrew Hore in Sydney on Tuesday.

New Zealander Castle described the meeting as "very open, very calm and very honest" and applauded Folau for having strong beliefs but said his use of social media needed to be respectful.

"There's a very clear policy around social media," she told the New Zealand Herald.

"When [athletes] use public platforms they need to think about the implications of a comment they make.

"Israel acknowledged he could have put a more positive spin on the message.

"He understands he's caused some grief in this.

"He's a very religious man.

"He wants to see everyone live in a positive world but needs to make sure he's respectful."

Folau's post sparked outrage the rugby world over and he was criticised by referee Nigel Owens as well as the Wallabies' major funders Qantas – the national airline of Australia.

But Castle dismissed suggestions that Qantas would waver in its support for Australian rugby.

"Qantas are facing the same challenges," Castle said.

"They've got thousands of staff and an inclusion policy but it's not a smooth road.

"Full inclusion is what we're hoping for.

"[Qantas chief executive] Alan Joyce is very clear they've got an inclusion policy and they're working towards full inclusion.

"That's what rugby is working towards."

Castle added there would be ongoing dialogue with Folau but he had not been formally punished.

"Israel's presented his views and beliefs and we're proud of the fact he's prepared to stand up for what he believes in," Castle said.

"But RA has got a policy of inclusion and using social media with respect. We both recognised we should use our social media platforms with respect.

"Israel's gone away to think about that. He's making sure we aren't asking him to compromise his beliefs.

"He doesn't want to be disrespectful."

Folau's contract expires at the end of 2018 and the Wallabies are obviously desperate to have him at the 2019 Rugby World Cup.

"We'd love him to stay in rugby," Castle said.

"He's a really strong role model in the Pacific community but we understand he's an athlete in demand."