The committed Christian argues he was unfairly dismissed on religious grounds. Folau, 30, is seeking $10 million in damages from RA and wants his contract reinstated.
The Australian reports his legal team insists he should still be playing for the Waratahs and the Wallabies, including in the upcoming Rugby World Cup.
"His form and natural talent suggests he would continue to be a star player for both teams," the unfair termination claim says, per The Australian.
More than 20,000 people have donated about $2.2 million to help fund Folau's legal battle via a campaign page set up by the Australian Christian Lobby. The ACL effort replaced an earlier campaign on GoFundMe, which was taken down by the platform for breaching its service guidelines.
Folau thanked his many supporters in the statement. "I have been blessed to have received the support of tens of thousands of Australians throughout my journey, and I want to say thank you to everyone who has offered their prayers and support. It has meant so much to (wife) Maria and me over the last few months and gives us strength for the road ahead," he said.
RUGBY AUSTRALIA 'FOOLISH TO PICK THIS FIGHT'
In a segment on Sky News, digital editor Jack Houghton said Folau could bleed Rugby Australia dry.
"The broader point that got missed when people were raising funds for this particular legal challenge was not that they were specifically endorsing anything he said — or the intentions behind it — but they were making the broader case, 'should you be able to be fired for holding certain religious views, if those views are controversial?'. That's the question we all want to know right now," he said.
"It really looks like Rugby Australia is in a lot of hot water here and financially they're not doing that great, we know this, and he (Folau) doesn't have to pay for any of this, so he can just sit there bleeding them dry and the benefit to the rest of Australia is some clarity over an issue which is getting a lot of people who may be haven't read much about the legislation weighing in prematurely."
"Rugby Australia was very foolish to pick this fight and they're now starting to pay for it," added The Advertiser columnist Caleb Bond.
"You reap what you sow and while their sponsors might have been happy with the decision they've made they might lose more money out of this than they would have out of the sponsorship situation."
According to a previous report in The Daily Telegraph, the future of rugby in Australia could be decided if Folau is successful in his challenge of RA's move to rip up his contract.
The report claimed Rugby Australia is privately bracing for a $12 million financial loss this season — pushing the code to the brink of collapsing.