The matter has been hanging over RA and the Wallabies for the past seven months since Folau was sacked from his AU$4m four-year contract for inflammatory social media posts and Martin was thrilled to see the end of it.
The 30-year-old former Wallabies full-back was set to demand A$14 million (U.S.$9.5 million) in compensation, claiming he was unlawfully dismissed under legislation that bans sacking a person due to their religion.
By nature of the fact that the settlement was confidential, we will not know how much Folau was paid out.
"The Social Media Post reflected Mr Folau's genuinely held religious beliefs, and Mr Folau did not intend to harm or offend any person when he uploaded the Social Media Post", the statement reads.
He had been suing Rugby Australia for AUD $14 million after having his contract terminated in May.
Rugby Australia and chair Raelene Castle have settled their legal dispute with Israel Folau. "The Parties do not intend to comment further on the terms of their settlement as it is confidential".
For their part, Rugby Australia will be thrilled the entire episode is over after a tumultuous year that saw the Wallabies exit the Rugby World Cup at the quarterfinals, a result that brought down the curtain on Michael Cheika's career as national coach.
He was originally seeking Aus$10 million compensation but upped that by $4 million last week, arguing he could have one day captained Australia.
An anchor has been cut from rugby in Australia following the conclusion of the Israel Folau saga, former test star turned commentator Greg Martin says.
"I understand that not everyone shares my faith and some find it hard to reconcile with their own beliefs", Folau said in a video posted on his website before the meeting. Ultimately, Rugby Australia apologised to him and there was an apology from Folau too.
"We now look forward to the federal government enacting the legislation necessary to further protect and strengthen these rights for all Australians".
The former rugby league and AFL player recently attracted criticism after he said the deadly bushfires were God's judgement for same-sex marriage and abortion laws.
Rugby Australia said in June that key sponsors such as airline Qantas would likely have walked away from the sport if it had not taken a strong stance over his homophobic remarks.