Israel Folau and wife Maria have thanked God after Rugby Australia apologised for sacking him over an Instagram post which said 'hell awaits' gay people.

In a humiliating backdown to spare the sporting body a lengthy court battle where Folau sought a whopping $14 million, Rugby Australia (RA), Folau and NSW Rugby announced on Wednesday that they had reached a settlement in their long-running stoush. 

RA said it did not support Folau's controversial post, but 'acknowledges and apologises for any hurt or harm caused to the Folaus' after his sacking.  

Folau and Maria said the family had been 'vindicated' by Wednesday's secret settlement.  

Rugby Australia CEO Raelene Castle arrives at the Federal Court of Australia for a mediation session with Folau in Melbourne, Monday, December 2

'We are extremely pleased with the settlement reached today,' Folau said in a video shared to his official accounts.

'Maria and I would like to thank God for his guidance and strength,' he said.

'Thank you to our supporters for their thoughts and prayers, in particular our families, our congregation as well as Martyn Iles and the Australian Christian Lobby.' 

Folau didn't announce any plans to return to football - and said he looked forward to 'moving on with his life' to 'focus on his faith'.     

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Folau hopes their case will lead to greater religious freedom.  

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

'We now look forward to the federal government enacting the legislation necessary to further protect and strengthen these rights for all Australians.' 

Rugby Australia's apology comes after the star footy player's controversy roiled Australia. It sparked debate over the right of contracts and corporate bodies to restrain free speech in this country, and triggered a push for religious freedom laws. 

Folau and Maria said the family had been 'vindicated' by Wednesday's secret settlement

Plenty to smile about: Israel Folau (with wife Maria) and Rugby Australia have reached a settlement after the footy player was sacked for a controversial Instagram post 

In its statement today, Rugby Australia said: 'The social media post reflected Mr Folau's genuinely held religious beliefs, and Mr Folau did not intend to harm or offend any person when he uploaded the social media post. 

Meanwhile, there was an apology from Folau also, who is said to be pleased with the settlement. He is believed to have won a huge windfall, but the parties are banned from disclosing the figure or any other terms of the deal. 

The statement said: 'Mr Folau wants all Australians to know that he does not condone discrimination of any kind against any person on the ground of their sexuality and that he shares Rugby Australia's commitment to inclusiveness and diversity.'

'Similarly, Mr Folau did not intend to hurt or harm the game of rugby and acknowledges and apologises for any hurt or harm caused.  

The former rugby league and AFL player last week increased his compensation claim from $10 million to $14 million, and said the Wallabies would have done better in the 2019 Rugby World Cup if he was playing. 

Reactions to the settlement included mockery of his original post and politicians expressing support for religious freedom laws. 

The Instagram post that destroyed Israel Folau's rugby union career. Rugby Australia now says this post 'reflected Folau's genuinely held belief' - although they didn't support his views

Tongue firmly in cheek, sports writer Richard Hinds tweeted: 'The Israel Folau case has been settled. 

'Drunks are believed to have been spared eternal damnation as part of the terms but no news yet on idolaters, liars or fornicators.'

One Nation NSW leader Mark Latham said it was a 'big, important win for religious freedom'. 

He also recently signalled he wouldn't be backing down from his firmly held religious beliefs. 

In an inflammatory sermon at his family's church - first reported by Daily Mail Australia - Folau suggested the drought and bushfires wreaking havoc across Australia's east were caused by the legalisation of same sex marriage.

'They've legalised same-sex marriage... going against the laws that God says,' he said in footage posted earlier in November. 

'Abortion – it's OK now to murder and kill infants, unborn children - and they deem that to be OK.

'Look how rapid these bushfires, these droughts, all these things they've come in a short period of time – you think it's a coincidence?' 

Israel Folau's case debate over the right of contracts and corporate bodies to restrain free speech in this country, and triggered a push for religious freedom laws

Questions have been raised about what will now happen to all the funds raised for Folau by the Australian Christian Lobby, after his campaign was dumped by GoFundMe earlier this year. 

The lobby's chief executive, Martyn Iles, tweeted that 'donors who gave to the Folau campaign will be contacted in due course and are entitled to refunds on a pro-rata basis'. 

In a statement on Wednesday, Mr Illes said Folau's settlement should set a clear precedent for the future.

'We look forward to the federal government producing reforms that prevent taxing and drawn-out legal processes like this in future,' Mr Iles said.

'People of all faiths need clear protections to speak openly about their beliefs. It is wrong for them to be silenced by the fear of litigation or lawsuits by activists.

'It is disproportionate in the extreme to end someone's career simply because they have said something controversial.

'Israel Folau's case was everyone's case, demonstrated by the huge outpouring of financial support from so many Australians.' 

Folau played 62 Test matches for Australia, playing his last in 2017, and scored 32 tries for his country

Folau had his multimillion-dollar rugby contract torn up after he shared a 'warning' to 'drunks, homosexuals and adulterers' among others that they were going to hell.

Folau had previously been warned about his social media use by Rugby Australia after sharing similar images. 

Folau played 62 Test matches for Australia, playing his last in 2017, and scored 32 tries for his country.  

Rugby Australia and Folau have wished each other well for the future, but by no means does that mean the controversy ends. 

Rugby Australia, NSW Rugby and Israel Folau's settlement statement 

Rugby Australia, NSW Rugby and Israel Folau have today settled their legal dispute following the dismissal of Israel Folau after he posted a religious message on social media (the Social Media Post).

The Social Media Post reflected Mr Folau's genuinely held religious beliefs, and Mr Folau did not want to harm or offend any person when he uploaded the Social Media Post.

Mr Folau wants all Australians to know that he does not condone discrimination of any kind against any person on the grounds of their sexuality and that he shares Rugby Australia's commitment to inclusiveness and diversity.

Rugby Australia and NSW Rugby do not in any way agree with the content of the Social Media Post. Inclusiveness is one of Rugby's core values and it welcomes all people to the game, including all members of the LGBTI community.

While it was not Rugby Australia's intention, Rugby Australia acknowledges and apologises for any hurt or harm caused to the Folaus. Similarly, Mr Folau did not intend to hurt or harm the game of rugby and acknowledges and apologises for any hurt or harm caused.

Rugby Australia and Mr Folau wish each other well for the future. The parties do not intend to comment further on the terms of their settlement as it is confidential.

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