Israel Folau is considering his options after being left "deeply saddened" by Rugby Australia's decision to terminate his contract over homophobic social media posts.

Folau's £2.15million, four-year deal has been ripped up after an independent panel on Friday backed RA's position that the comments he made on April 10 warranted his sacking rather than a fine or suspension.

The 30-year-old Christian fundamentalist said on his Instagram account that "hell awaits" for "drunks, homosexuals, adulterers, liars, fornicators, thieves, atheists, idolaters" in a post that remains visible.

Folau has 72 hours to appeal against the outcome, but a report in Australia suggests he will pursue a different route by taking RA to the Supreme Court.

Whichever path the 73-Test Wallabies full-back follows, financial pressure will continue to build on the cash-strapped union in the form of mounting legal costs.

In a statement released after the panel gave its approval of his sacking by RA, Folau said: "It has been a privilege and an honour to represent Australia and my home state of New South Wales, playing the game I love.

"I am deeply saddened by today's decision to terminate my employment and I am considering my options.

During the hearing process, the cross code star was at one point reportedly offered £538,000 by RA to walk away from the Wallabies and Waratahs.

On another occasion he was urged to take down his posts in the hope of bringing him back from the brink. At a church sermon on Sunday, however, he declared both options were "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," Folau said.

"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. It is always the will of God that comes first..."