Israel Folau

The Daily Telegraph reported Rugby Australia and Folau settled the former Wallaby's wrongful termination claim for the large sum after the fullback initially sought $14 million in compensation.

However, Castle has come forward on social media to deny the report.

"Folau settlement numbers are confidential but numbers being speculated are wildly inaccurate," Castle said in the short statement.

Folau sought compensation from Rugby Australia after he believed he had his contract torn up wrongfully for a code of conduct breach on social media.

The sacked Wallaby and his netballer wife Maria Folau went to the Federal Court in Melbourne on Monday for a mediation meeting over his $14 million compensation claim against Rugby Australia.

Folau claims he was wrongfully dismissed by Rugby Australia and Rugby NSW after a controversial Instagram post in April condemning "drunks" and "homosexuals" and warning "hell awaits" them.

His lawyer George Haro told reporters in Melbourne late on Monday evening they weren't able to reach an "amicable solution just yet.

The cross-code star lodged an updated statement of claim in the Federal Court where he’s increasing his demands from $10 million to $14 million.

According to The Daily Telegraph, Folau, who was sacked for anti-gay comments made on social media this year, said his contract termination will cost him more than $4 million from 2019-21 and also claimed he stood to make up to $1.5 million a season overseas when his contract with RA was up.

After the sacked Wallabies star claimed that sin is to blame for the bushfires engulfing New South Wales, Labour MP for the East Coast electorate Ms Allan fired back in Folau's direction.

Taking to Twitter, Ms Allan - who is openly gay - pointed out that she comes from a similar religious background.

"I grew up in a Pentecostal church and listened to stuff like this growing up," she wrote.

"Even though I knew it didn't sound right, there was always this internal voice wondering whether it might be.

Folau was sacked by Rugby Australia in May for a "high-level breach" of contract after the full-back posted "hell awaits drunks, homosexuals, adulterers, liars, fornicators, thieves, atheists and idolaters" on Instagram.

Cheika overlooked Folau before he was sanctioned, stating "the team is king", and the Wallabies boss has revealed that stance did not go down well with some supporters.

"People were saying all sorts of stuff," Cheika said. "Just threats I was getting; people on the street, some to my face, a couple at some games. It was just crazy stuff."

Folau, a devout Christian, had his contract terminated by RA and the Waratahs for a "high-level breach" after he posted "hell awaits drunks, homosexuals, adulterers, liars, fornicators, thieves, atheists and idolaters" on Instagram.

RA and Folau failed to reach a settlement in June over the full-back's sacking and an unfair dismissal case began in court on Tuesday.

Solicitor George Haros, representing Folau, said his client is "extremely strong" and is keen for an apology as he addressed the media outside court.

On the same day that the former Wallaby's Instagram and Twitter pagesdisappeared for up to four hours, Folau's former employer filed an application in the Federal Circuit Court to have the high profile case moved.

The organisation was not immediately available for comment, but the development could be interpreted as a legal strategy to slow proceedings.

As the "little sister" to the Federal Court, the Federal Circuit Court has a track record of moving cases through quicker than its federally-based siblings and at a lower cost.

Mr Folau worked as a tutor and boarding house supervisor at St Gregory's College at Campbelltown. He was also an alumnus of the school, who finished eighth in the state in religious studies in the 2016 Higher School Certificate.

A staff member confirmed the decision on Thursday. The school's decision came after the Sydney Morning Herald revealed Josiah's involvement in the 30-member Jesus Christ Church founded by his uncle, Israel Folau's father, Pastor Eni.

The church preaches that any Christian who is not "born again" will go to hell.

The decision comes after the former Wallaby and RA failed to reach an agreement at a mediation hearing at the Fair Work Commission on June 28.

"Unfortunately, our conciliation before the Fair Work Commission did not resolve the matters between us and I have been left with no choice but to commence court action," Folau said in a statement on Thursday.

The Daily Telegraph has reported that the sacked former Wallaby was spotted in Liverpool and will likely be in attendance when the Silver Ferns take on Australia on Thursday night.

Israel's contract with RA was terminated following a code of conduct hearing instigated after he shared an image on Instagram that said "hell awaits" homosexuals and other "sinners".

In an interview with Sky News last month, Israel said the fallout had been "extremely hard" on Maria, who is a high-profile sportswoman in New Zealand.