Israel Folau's $4 million contract may have been scrapped on Friday following the fallout to his anti-gay Instagram post, but the saga is far from over.

And rugby is "set to burn," according to Daily Telegraph journalist Jamie Pandaram.

"Folau is unshakeable in his conviction that he's talking to God and acting out the Lord's commandments," Pandaram wrote. "He views his predicament as a test of his faith, and will, therefore, take it to its full conclusion.

"This is a higher calling for him. He is willing to be a martyr for his Christian cause … And rugby will burn while he does so."

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The Daily Telegraph reported that Folau will likely brush the option of a second code of conduct hearing to appeal a termination decision, and instead head straight to court.

Rugby Australia Chief Executive Raelene Castle. Photo / Getty
Rugby Australia Chief Executive Raelene Castle. Photo / Getty

The 30-year-old already rejected a $1 million settlement offer by Rugby Australia and looks keen to make a statement about his beliefs.

Pandaram believed rugby in Australia was set to suffer by Folau's expected actions in the aftermath of his sacking and warned that the sport could lose much more than just their Wallabies star.

"Israel Folau is set to bring Australian rugby to its knees," he wrote.

"This could well send the game broke. Rugby is in a precarious financial situation but a costly, drawn-out legal case would also result in loss of sponsors and fans."

Folau already issued a parting jab at Rugby Australia, just hours after his official axing from the Wallabies.

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In his first Instagram post since the now infamous one which got him banned — Folau shared an image captioned with a Bible quote from Matthew 6:33: "But seek ye first the kingdom of God, and his righteousness and all these things show be added unto you."

Folau now has 72 hours to appeal the termination decision.

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