Fairfax is reporting that Israel Folau has agreed to terms with the NSW Waratahs, and now just needs to sign with Australian Rugby Union to confirm that he will stay on for two more years in rugby.

Folau, who will be part of the 40-man Wallabies squad to be announced Friday by new coach Ewen McKenzie, is not a done deal with rugby, but has agreed in principal to two further seasons with the Waratahs, under Michael Cheika.

The Waratahs and the ARU both contribute to salaries and match fees for Wallabies players.

Quade Cooper was one player who had signed with a Super Rugby franchise, while struggling to agree to terms with the ARU.

Folau’s next move has been hotly reported, with NRL clubs strongly pressing for his signature following his sensational debut year for the Waratahs and Wallabies.

The Roar understands one sticking point for Folau’s camp is the lack of time he has with his hands on the ball.

Playing on the wing in attack for the Wallabies, he received the ball on too few occasions during recent Lions Test matches, despite his devastating running.

Folau’s hamstring injury has recovered since being subbed off midway during the first half of the third Lions Test.