Israel Folau will appeal Rugby Australia's decision to issue the Wallabies star with a breach notice for his anti-gay social media post last week.

The 30-year-old advised officials that he won't be accepting the breach notice, which means it will be referred to a code of conduct hearing.

Folau was served with a breach notice by Rugby Australia this week over his controversial Instagram post that said: "Warning. Drunks, homosexuals, adulterers, liars, fornicators, thieves, atheists, idolators. Hell awaits you. Repent! Only Jesus saves."

However, according to a report from the Daily Telegraph, Folau, who inked a $4m four year deal last year, refused to have the additional clauses retrospectively inserted into the contract.

Rugby Australia still believe they are still on safe ground, because they will argue Folau breached the standard player code of conduct by vilifying others because of their sexuality.

The Telegraph labelled the contract situation as a "bungle" which could leave RA facing action under workplace anti-discrimination requirements.

- More to come

• Rugby Australia starts process to terminate Israel Folau's contract