Wallabies superstar Israel Folau has 48 hours to respond or face the sack, after being served with a breach notice by Rugby Australia over his controversial social media posts.
RA chief executive Raelene Castle said Folau had been charged with a "high level" code of conduct breach and its integrity unit had recommended his contract should be terminated.
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He can either accept that finding or ask for a code of conduct hearing.
Castle said all fault lies firmly with Folau.
"At its core, this is an issue of the responsibilities an employee owes to their employer, and the commitments they make to their employer to abide by their employer's policies and procedures, and adhere to their employer's values," she said on Monday.
"Following the events of last year, Israel was warned formally and repeatedly about the expectations of him as player for the Wallabies and NSW Waratahs with regards to social media use, and he has failed to meet those obligations.
"It was made clear to him that any social media posts or commentary that is in any way disrespectful to people because of their sexuality will result in disciplinary action.
"All professional Rugby players in Australia are bound by the code of conduct and there is a process in place for any disciplinary matter.
"We appreciate that this particular matter will attract significant interest, but due process must be followed."