Australia full-back Israel Folau has avoided sanction by Rugby Australia for his controversial comments on homosexuality.

Responding to a question to him on Instagram earlier this month, Folau appeared to suggest that gay people were destined for "HELL.. Unless they repent of their sins and turn to God" in a post that was subsequently deleted.

The 29-year-old on Monday wrote an article on sports website Players Voice to discuss the storm caused by the post and repeated his deeply-held religious views.

Folau had told RA chief executive Raelene Castle and NSW Rugby boss Andrew Hore in talks last week that he would walk away from the sport if it was felt his position had become untenable.

Castle said in a statement on Tuesday: "In his article, Israel clearly articulated his religious beliefs and why his faith is important to him and has provided context behind his social media comment.

"In his own words, Israel said that he did not intend to upset people intentionally or bring hurt to the game. We accept Israel's position.

"Rugby Australia will use this experience as an opportunity to remind all employees of their obligation to use social media in a respectful way."

Folau's RA contract expires at the end of the year and the Wallabies are keen for one of the game's most dangerous attacking players to remain in rugby union ahead of the 2019 World Cup, amid interest from European clubs and rugby league.

He has made 62 appearances for Australia, having initially started out as a rugby league player.

"During the meeting I told them it was never my intention to hurt anyone with the Instagram comment, but that I could never shy away from who I am, or what I believe," Folau wrote on Monday.

"They explained their position and talked about external pressure from the media, sponsors and different parts of the community, which I understand.

"I acknowledge Raelene and Andrew have to run things in a way that appeals broadly to their executive, fans and sponsors, as well as its players and staff. It is a business." 

Welsh referee Nigel Owens has said he believes comments like Folau's could contribute to youngsters taking their own lives.

"We need people to understand and respect everyone for who they are, you don't have to agree with or even like it, but let everyone live their own lives," said Owens.

"Yes, you are entitled to your opinion but one should understand what that opinion can do to young and vulnerable people's lives in particular ones in a bad place dealing with their sexuality."