Rugby Australia says it intends to terminate Israel Folau's contract after a social media post by the full-back in which he said "hell awaits" gay people.
Thirty-year-old Folau has 73 caps and was expected to play at this year's World Cup.
Rugby Australia and the New South Wales Rugby Union said they have made "repeated attempts" to contact Folau but he has failed to get in touch with either organisation.
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"Israel has failed to understand that the expectation of him as a Rugby Australia and NSW Waratahs employee is that he cannot share material on social media that condemns, vilifies or discriminates against people on the basis of their sexuality," the governing bodies said in a statement.
"As a code we have made it clear to Israel formally and repeatedly that any social media posts or commentary that is in any way disrespectful to people because of their sexuality will result in disciplinary action."
The Wallabies star was warned last year, but avoided any disciplinary action, for making homophobic comments on his social media channels.
On Wednesday, he posted on social media that "drunks, homosexuals, adulterers, liars, fornicators, thieves, atheists and idolaters" should "repent" because "only Jesus saves".
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