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Israel Folau says he is disappointed a settlement wasn't reached with Rugby Australia at a conciliation meeting before the Fair Work Commission on Friday.

Rugby Australia and Israel Folau have failed to reach an agreement over the ex-Wallaby's sacking after a nearly four-hour meeting, with the dispute now destined for court.

Representatives from both parties met at the Fair Work Commission in Sydney on Friday for a mediation hearing - the first formal step in the dispute.

"We are disappointed that we were unable to reach settlement with Rugby Australia today," one of Folau's lawyers told reporters.

"It appears as though that unless things change, we'll be heading to court."

Folau said he was "very disappointed with the outcome".

"But I'd like to thank all those that have supported me throughout this time. I will continue to stand up for the freedoms of all Australians," he said.

Folau had been hoping RA would apologise for terminating his multi-million dollar contract over a social media post in April and acknowledge his sacking was a mistake.