Israel Folau's status as the biggest star in Australian rugby wasn't enough to save his job in the wake of a social media post that condemned gay people and other so-called sinners to eternal damnation.

Rugby Australia on Friday terminated Folau's four-year contract, 10 days after an independent panel found the 30-year-old fullback guilty of a high-level breach of the players' code of conduct for his contentious post in mid-April.

Folau can appeal the decision but it appears, at least for now, that his career has gone down in flames. The whole saga has thrown Australia's preparations for the Rugby World Cup, and the national administration of the sport, into turmoil.

Rugby Australia chief executive Raelene Castle told a news conference in Sydney, broadcast live on TV, that Folau had left them with no choice but to terminate his contract.

"We want to stress that this outcome is a painful situation for the game," Castle said. "Rugby Australia did not choose to be in this situation but Rugby Australia's position remains that Israel, through his actions, left us with no choice but to pursue a course of action resulting in today's outcome."

A self-described devout Christian, Folau said he was merely posting a passage from the bible and he refused to take down the online post.

The code of conduct charge sparked debate about freedom of speech and the right of players to express their beliefs. It also followed a warning Folau received from Rugby Australia last year over a previous contentious post that drew criticism from some major sponsors of the game.

In February, Folau signed a contract extension to remain with the Waratahs and Australian rugby until the end of 2022.

Castle said the contract outlined the expectations of players, although there has been speculation about inconsistencies in detail over when certain clauses were inserted.

"Our clear message to all rugby fans today is that we need to stand by our values and the qualities of inclusion, integrity, discipline, respect and teamwork," Castle said.

Folau has been the undisputed star in his 73 test matches for the Wallabies since he joined the rugby union ranks following professional contracts in Australian rules football and in rugby league, where he also represented Australia.

In his most recent Super Rugby match for the Sydney-based New South Wales Waratahs, Folau scored his 60th try, the most of any player in the tournament, breaking the record of former New Zealand winger Doug Howlett.

Folau did not immediately comment on the contract termination, but told people in his church on the weekend that he wasn't prepared to compromise on his faith.

"There have been many opportunities to potentially make the situation a little bit easier. I could go back and play the game, get everything back to the way it used to be," he was quoted as saying, but "It is always God that comes first."

Castle said she'd been in touch with professional players and assured that Rugby Australia "fully supports their right to their own beliefs and nothing that has happened changes that."

"But when we're talking about inclusiveness in our game, we're talking about respecting differences as well," Castle said. "When we say rugby is a game for all, we mean it."