The former Wallabies player had been suing Rugby Australia for AUS$14 million (£7.3 million/$9.6 million/€8.6 million) after having his contract terminated in May.

As reported by Australian Broadcasting Corporation News, mediation talks between Folau and Rugby Australia began at the Federal Circuit Court in Melbourne on Monday (December 2), but were suspended after 12 hours.

Today, a joint statement from Rugby Australia, New South Wales Rugby and Folau confirmed a settlement had been reached after talks resumed via teleconference.

The statement said Folau's social media post reflected his "genuinely held religious beliefs" and that he had not intended to cause harm or offence when he uploaded the 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," it reads.

Rugby Australia said it did not "in any way" agree with the content of the post, adding inclusivity was "core" to the sport.

The national governing body apologised to Folau as part of the confidential settlement.

"While it was not Rugby Australia's intention, Rugby Australia acknowledges and apologises for any hurt or harm caused to the Folaus," the statement added.

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

Folau published a video on his website, with wife Maria, thanking supporters and the Australian Christian Lobby for their "thoughts and prayers".

The 30-year-old said he opened legal proceedings to protect the "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," he said in the video.

Folau was sacked by Rugby Australia after he posted "Drunks, homosexuals, adulterers, liars, fornicators, thieves, atheists and idolators - Hell awaits you" on Instagram in April.

A three-member panel which heard his appeal in May found him guilty of a "high-level" breach of Rugby Australia's player code of conduct.

He chose not to appeal against the tribunal ruling, citing a lack of confidence in the process.

Folau, who is fourth in the list of all-time try scorers for Australia and has 62 caps for the national side, was raised a Mormon before becoming an active member of an Assemblies of God Fellowship in 2011.

His contract was worth a reported AUS$4 million (£2.1 million/$2.7 million/€2.5 million). 

It was just last week that he upped his demands for compensation from Rugby Australia to AUS$14 million.

Folau - previously one of the nation's highest-paid athletes - had originally sought AUS$10 million (£5.2 million/$6.8 million/€6.2 million) and a return to the national side

The Australian Christian Lobby, which donated AUS$100,000 (£52,000/$68,000/€62,000) to Folau's cause and set up a crowdfunding campaign, said the case set "a clear precedent for every bureaucrat, manager, or person in a position of power, that they cannot ruin someone's career because they don't like what they believe".

"Israel Folau's case was everyone's case, demonstrated by the huge outpouring of financial support from so many Australians," it said.

In September, the Rugby League International Federation (RLIF) denied giving Folau permission to play for Tonga.

Reports from the Pacific Island claimed the Australian had been cleared to compete in the Oceania Cup the following month, but the RLIF described it as "incorrect".