Rugby Australia has been facing pressure to terminate the 30-year-old's central contract after he was accused of posting homophobic comments on social media.
In a statement released on Friday, it said: "Rugby Australia and the NSW Rugby Union have met with Israel Folau in Sydney today.
"As the meeting was held in confidence between the player and his employers, Rugby Australia and the NSW Rugby Union will not comment on the discussions at the meeting.
"Following today's meeting, the two organisations will update their respective Boards on the matter to consider next steps. Our joint position regarding Israel Folau is unchanged."
Publishing on Instagram, Folau said "hell awaits" homosexuals "unless they repent". He also referred to "drunks, adulterers, liars, fornicators, thieves, atheists and idolaters".
Meanwhile, England World Cup winner Will Greenwood said the sport must take a strong stand against hate.
He said: "He's allowed to think those thoughts; they are his religious beliefs.
So, Qantas is the main sponsor of Rugby Australia. They have a commercial code-share deal with Emirates (the UAE's state-owned carrier). The same government that owns Emirates makes homosexuality illegal on their turf and yet Israel Folau is the bad guy... go figure. Hypocricy?
— Michael McLaren (@mclaren2gb) April 11, 2019
"But you can't spread those religious beliefs when it categorises a group in society who are such wonderful men and woman, and ask men to despise them."
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