Israel Folau and Rugby Australia have settled their dispute over the sacking of the former Wallaby due to his controversial social media posts.

The two sides announced a confidential settlement had been reached on Wednesday afternoon, after mediation ordered by the Federal Circuit Court.

Folau had asked for $14 million in compensation for the sacking, while Rugby Australia said it was within its rights to sack him over a controversial Instagram post in April condemning “drunks” and “homosexuals”, and warning “hell awaits” them.