Wallabies have avoided a potential World Cup distraction after Rugby Australia's legal battle with former star Israel Folau looks set to stretch out into next year.

A potential court date on February 4 next year has been set if RA fail to resolve their multimillion dollar unfair dismissal case with the former Wallaby.

It means the case won't be serve as a distraction for the Wallabies during the World Cup in Japan, which begins next month – although it will clash with the start of the Waratahs' Super Rugby season.

Folau, who didn't appear in court today, wants $10 million in damages and for his contract with RA and the Waratahs to be reinstated, claiming that he was sacked on religious grounds.

Advertisement

According to reports, RA's lawyers indicated they may apply for the case to be transferred to Sydney and to be heard by the Federal Court of Australia rather than the Federal Circuit Court.

Folau's lawyer Stuart Wood QC accused RA of trying to delay proceedings, telling Judge Alstergren to be aware of "what's going on in the background".

RA lawyer Adam Hochroth denied the allegation. If mediation is not successful, both parties will return to court on December 17 for a directions hearing ahead of the trial.

Federal Circuit Court Chief Judge Will Alstergren said that both parties would be expected to attempt mediation by the middle of December.

Folau has also reactivated his social media accounts after shutting them down a day before the case reached court.

More than 20,000 people have donated around $2.2 million to Folau's legal fight on the Australian Christian Lobby website.