Israel Folau thanks God after huge Rugby Australia payout leaked

Israel Folau feels vindicated, after settling his long-running legal dispute with Rugby Australia.

The former Wallabies star will reportedly receive an AU$8 million windfall from his former employers, who sacked him earlier this year, after repeated social media comments that breached code-of-conduct rules.

Folau sued Rugby Australia for wrongful termination on the grounds of religious discrimination, seeking $14 million in compensation.

Rugby Australia was determined to hold its ground as mediation, ordered by the Federal Circuit Court, began this week and a marathon 12-hour session on Monday failed to yield a result, as both sides remained at loggerheads.

But, on Wednesday afternoon, Folau and Rugby Australia released a joint statement, saying they had reached an agreement and settled for a confidential amount.

Despite a suggestion neither party would provide any further comment on the matter, Folau - flanked by wife and Silver Ferns star Maria - released a video, expressing his delight at the result.

"We are extremely pleased with the settlement reached today," Folau said. "With today's acknowledgement and apology from Rugby Australia, we have been vindicated and can now move on with our lives, and focus on our faith and our family."

"Maria and I would like to thank God for his guidance and strength. Thank you to our supporters for their thoughts and prayers, in particular, our families and congregation," he said.

"We started this journey on behalf of all people of faith, to protect their rights of freedom of speech and religion."

"We now look forward to the Federal Government enacting the legislation necessary to further protect and strengthen these rights for all Australians."

The joint statement said Folau "does not condone discrimination of any kind" and also reinforced Rugby Australia's position that it did not agree with his views, because the governing body preached inclusivity within the sport.

Both parties apologised for any hurt the damaging saga had caused.