Rugby Australia CEO: Folau admitted he caused harm

CEO Raelene Castle says Rugby Australia hopes to reach a 'sensible and reasonable' settlement when they meet with Israel Folau on Monday.

If the mediation hearing is unsuccessful, the two parties will go to court in February.

Folau is seeking A$14-million (R140-million) in damages from Rugby Australia, which terminated his contract earlier this year after he posted on Instagram that 'hell awaits' gays and other 'sinners'.

'Israel admitted he's caused harm with his comments and stated he would not curb his social media use and would post whatever he likes whenever he feels the need to share his view,' Castle told reporters outside the courtroom.

'But we come here today with a genuine desire to find a settlement that is sensible and reasonable so that we can return all of our focus and resources to growing the game of rugby.'