Israel Folau says he is "deeply saddened" and "considering his options" after his contract was terminated by Rugby Australia over his homophobic social media posts. 

The Wallabies full-back has the right to appeal against the termination of his contract, while a report in Australia says he is considering taking RA to the Supreme Court.

In a statement released after his sacking, Folau said he is "deeply saddened by today's decision" and is "considering my options".

"As Australians, we are born with certain rights, including the right to freedom of religion and the right to freedom of expressions," the statement read.

"The Christian faith has always been part of my life and I believe it is my duty as a Christian to share God's words.

"Upholding my religious beliefs should not prevent my ability to work or play for my club and country."

The 30-year-old had previously been found to have committed a "high-level breach" of the code of conduct over the posts he made in April.

Folau, a devout Christian, said on his Instagram account that "hell awaits" for "drunks, homosexuals, adulterers, liars, fornicators, thieves, atheists, idolators".

He had previously been warned over making homophobic comments on social media in 2018, but did not face disciplinary action at the time. 

Rugby Australia chief executive Raelene Castle told a press conference: "We are here to announce that Wallabies and Waratahs player Israel Folau has today been issued a sanction directing termination of his playing contract for his high-level breach of the professional players' code of conduct.

"The three-member panel of John West, QC; chair, Kate Eastman and John Boultbee, provided its final written decision today in relation to the code of conduct hearing over Folau's social media post on April 10, 2019.

"While Rugby Australia accepts the panel's decision directing termination of Israel Folau's contract for his high-level breach of the code of conduct, we want to stress that this outcome is a painful situation for the game."

Ms Castle added: "Rugby Australia did not choose to be in the situation, but Rugby Australia's position remains that Israel, through his actions, left us with no choice but to pursue the course of action resulting in today's outcome.

"This has been an extremely challenging period for rugby. This issue has created an unwanted distraction in an important year for the sport and for the Wallabies team.

"But our clear message for all rugby fans today is that we need to stand by our values and the qualities of inclusion, passion, integrity, discipline, respect and teamwork."