Rugby Australia and the New South Wales Rugby Union says they intends to sack Israel Folau over a homophobic social media post.
On Wednesday, Folau posted on Instagram that "drunks, homosexuals, adulterers, liars, fornicators, thieves, atheists and idolaters" should "repent" because "only Jesus saves", and made similar remarks on Twitter.
He also remarked that "hell awaits" gay people.
Folau, 30, has 73 caps and was expected to play at this year's World Cup.
The governing bodies said: "He does not speak for the game with his recent social media posts.
"In the absence of compelling mitigating factors, it is our intention to terminate his contract."