Israel Folau will not appeal the Code of Conduct ruling that saw his contract with Rugby Australia terminated.

Rugby Australia today confirmed that the Code of Conduct matter had been formally concluded, with Folau failing to meet the 72-hour deadline to appeal the decision.

Folau still has the option to take the matter to the Australian court system.

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

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Now, this latest news could back up that belief, with it being expected that Folau's next move will see him take Rugby Australia to the Supreme Court to contest the ruling.

"The 72-hour window for Israel Folau to appeal his high-level Code of Conduct breach and sanction has expired," Rugby Australia said in a statement.

"As Folau has not notified the panel of his intention to appeal, the Code of Conduct process has now formally concluded.

"With the Code of Conduct matter complete, Folau's employment contract will be terminated."

Folau had earlier hinted that he would continue to fight the matter.

"I am deeply saddened by today's decision to terminate my employment and I am considering my options," he said on Friday after the decision was handed down.

"As Australians, we are born with certain rights, including the right to freedom of religion and the right to freedom of expression. The Christian faith has always been a part of my life and I believe it is my duty as a Christian to share God's word. Upholding my religious beliefs should not prevent my ability to work or play for my club and country."

There had been reports that Folau taking Rugby Australia to court would significantly impact on the organisation's finances, but CEO Raelene Castle said a loss in a court appeal wouldn't end Rugby Australia.

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"I think it is an exaggeration to say it will imperil the game's finances — I don't believe that to be true," she said.

"Certainly I believe this is money that we could be spending on the rugby community and that's disappointing. Every dollar that we spend on legal fees is a dollar that we don't spend in the community.

"What I would say is that Israel also knew the implications. The first time around when he posted the first time and the implications for the wider game was something the tribunal took into consideration, both financial and also reputation from a disrepute perspective, when they got to the stage where they decided termination was the only option."