SYDNEY, Australia -- Rugby Australia and former Wallaby back Israel Folau failed to reach an agreement after a near four-hour meeting on Friday over the termination of Folau's contract over his anti-gay social media posts.

The dispute appear now appears to be headed to court.

Representatives from both parties met at the Fair Work Commission for a mediation hearing, the first formal step in the dispute.

"We are disappointed that we were unable to reach settlement with Rugby Australia," a member of Folau's legal team said. "It appears as though that unless things change, we'll be heading to court."

Folau said he was "very disappointed with the outcome."

The 30-year-old Folau, who also played Super Rugby with the New South Wales Waratahs, had been hoping Rugby Australia would apologize for terminating his multi-million dollar contract.