Rugby: Wallabies legend Nick Farr-Jones comes to the defence of Israel Folau

Rugby Australia has scored its first victory in the fight with Israel Folau

An independent panel found the country's best player guilty of a "high level" code of conduct breach.

Folau will now likely be fired, but at least one Wallabies legend believes that is the wrong result.

Folau cast a smile as he walked away from that marathon hearing and maybe from rugby altogether.

It's another step closer to a landmark divorce between Australian Rugby and its $4million superstar.

Australian sporting pundit Robert Craddock calling the moment one of the most significant in the sporting century for Australia.

"A powerhouse rugby union player, who is Australia's best player heading into a World Cup, will be banished from the game - probably for good," Craddock said on Fox Sports Australia.

The panel is yet to reach a decision on whether it's right for Folau to be fired, after posting on Instagram last month that for homosexuals, "Hell awaits".

But a high-level grade is the only decision severe enough for his sacking to stand.

Unlike others, like Kurtley Beale, who faced the same level of breach, Folau gets no credit for contrition - standing by his Christian beliefs.

But a Wallabies great believes there is a great sense of misunderstanding surrounding Folau and his beliefs.

"Israel hasn't apologised and that confounds a lot of people in Rugby Australia, and a lot of the corporate sponsors and probably the public as well," Nick Farr-Jones said on Wednesday.

"But he hasn't apologised because he doesn't believe he's done anything wrong."

Nick Farr-Jones.
Nick Farr-Jones. Photo credit: AAP

Farr-Jones spoke at the hearing in Folau's defence.

The World Cup-winning captain is also a Christian and believes Folau has done little wrong."

"If you asked Israel was it offensive and was it disrespectful, he'd say 'absolutely not'.

"To this day, he believes he's done nothing wrong and is not in breach of any contract."

But after losing one battle with Rugby Australia, he's now much more likely to lose the war.