Rugby Australia chief executive Raelene Castle was left visibly upset after a heated verbal stoush with Wallabies coach Michael Cheika at a cocktail function at the Australian embassy in Tokyo during the World Cup.

In an incident that was symptomatic of the degenerating relationship between two of Australia's highest-ranking rugby officials, multiple sources have told the Herald that former Wallaby Morgan Turinui was forced to intervene to stop Cheika and Castle tearing into each other in front of dozens of guests at the embassy in Tokyo's Azabu Juban district.

The relationship between Michael Cheika and Raelene Castle had broken down completely during the World Cup. Credit:AAP

The Herald understands the argument was over Castle's insistence that the Wallabies follow through on their commitment to attend the September 25 function, which was held in the garden of the embassy on the Wednesday night before Australia's crunch pool game against Wales.

Embassy officials wanted the entire squad and staff to attend but, in the midst of the fallout from winger Reece Hodge's suspension in the days prior, and because the Wallabies were a few days out from the most important game of their campaign, Castle had offered a compromise that the team send four players and some other Australian rugby dignitaries.