Wallabies fullback Israel Folau has reportedly turned down an AU$1 million payout to end his dispute with Rugby Australia (RA) over his controversial social media posts.
The Sunday Telegraph reports Folau rejected RA's offer, which would have required him to walk away from his contractual fight, before proceedings began on Saturday.
RA announced it would terminate Folau's contract after he posted homophobic content on social media on April 10. The 30-year-old is challenging the decision.
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The Telegraph suggested RA may fear it'll lose its battle against Folau.
RA is bracing for an AU$12 million financial loss for the upcoming season - pushing the code to the brink of collapsing if they have to pay out the entirety of Folau's AU$4 million contract.
Folau took to Instagram in April to proclaim "hell awaits drunks, homosexuals, adulterers, liars, fornicators, thieves, atheists and idolators" unless they repent and turn to Jesus.
Folau argues it is unlawful for the governing body to tear up his four-year contract.
The code-of-conduct hearing will continue on Sunday, but no more witnesses are expected to be called.
On Saturday, Folau, RA chief executive Raelene Castle and Wallabies coach Michael Cheika all gave evidence.
A decision on Folau's future is not expected to be made until mid-next week.
Meanwhile popular French sports magazine L'Equipe has dedicated a special edition to champion sport's fight against homophobia.
The front cover of their latest issue showing an image of two male water polo players kissing each other, the title reading: "Kiss whoever you want."
In its editorial, the magazine also takes aim at "the stream of abject words, uttered, among others, by a well known Australian rugby player".
Folau is later mentioned in a section titled 'Homophobia: A season of hate'.