Israel Folau has lost a lot in the wake of his saga with Rugby Australia after making controversial anti-gay social media posts in April.

And now the Wallabies star looks set to lose his relationship with one of his longest-serving allies.

According to a report by the Sydney Morning Herald, Folau has all but turned his back on manager Isaac Moses as the 30-year-old braces for the announcement of his penalty for his Instagram posts last month.

Moses, who represents many high-profile rugby players, has stood by Folau since he was just 14 years old.

The Sydney Morning Herald reported that although Moses remains Folau's agent, the pair had a fall out when Folau refused to speak with the Waratahs and Rugby Australia in the direct aftermath of his April 10 posts - where he said homosexuals, among other "sinners", would go to hell.

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Israel Folau, David Matthews, Nick Johnston and Isaac Moses. Photo / Getty
Israel Folau, David Matthews, Nick Johnston and Isaac Moses. Photo / Getty

Folau resisted opportunities to settle things with Rugby Australia and refused to remove the post, despite Moses' advice.

Making matters worse for the relationship, Folau is also understood to have grown closer to Moses' former business partner Joe Wehbe, who launched court action against Moses over a financial dispute.

Moses was not present at Folau's code of conduct hearing last week in Sydney, with wife Maria Folau appearing in support.

The Sydney Morning Herald confirmed that Folau had rejected an offer from Rugby Australia to enter settlement talks prior to the hearing, later stating that he was willing to front a low-level breach due to his posts offending some players and fans.

But given Folau's lack of refusal to take down the post and concession that he may make similar comments in future, it's likely the Waratahs star's four-year multi-million dollar contract will be terminated under a high-level breach of the code of conduct.

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

Folau had already lost the support of the Salteri family and Jaguar Land Rover last year when he made his first round of anti-gay posts, now losing major sponsor Asics, who had originally stood by him in 2018.

Earlier this week, Folau offered an explanation for his posts for the first time, saying it was a message from God and that he resisted contact with Rugby Australia to settle things because he believed it was 'Satan's work.'

"There have been many opportunities to potentially make the situation a little bit easier. I could go back and play the game, get everything back to the way it used to be," he said.

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"The way Satan works is he offers you stuff that could look good to the eye and makes you feel comfortable, and if you follow that path all the worries and troubles will go away. [But] it is always the will of God that comes first."

The three-person panel is expected to reach a decision by tomorrow regarding the penalty.