If the two parties can't agree on a settlement, the Federal Court could be where the next battle leads.
Folau decided not to appeal through Rugby Australia's internal channels, saying that he feared he would receive unfair treatment during the process.
"My decision not to commence Rugby Australia's appeal process is in no way an acceptance of the judicial panel's findings," Folau said in a statement on Monday.
"I simply do not have confidence in Rugby Australia's ability to treat me fairly or lawfully throughout this process."
Meanwhile, the Rugby Union Players' Association (RUPA) said there will be a review into players expressing religious beliefs and set out clear guidelines around the matter.
"RUPA notes that Rugby AU has not yet provided any clear or specific parameters to the professional playing group specifying how it expects individual professional players to express their faith and beliefs in a manner acceptable to Rugby AU," a RUPA statement read.
"To address this, RUPA will immediately establish and undertake an expression of faith and beliefs review alongside its players, incorporating advice from those with and without strong religious beliefs, with an aim to hold a first meeting of the review committee following the conclusion of the Super Rugby and World Rugby Sevens Series seasons."
Rugby Australia boss Raelene Castle said she supported the review.
"We look forward to working with RUPA to fully understand their plans for the review and how Rugby Australia can support it."