Israel Folau has signed a three-year deal to remain with the Australian Rugby Union and NSW Waratahs until the end of 2018.

The 26-year-old fullback’s retention was announced at the ARU’s Sydney headquarters on Wednesday, with Folau agreeing to a flexible contract which allows him to play in Japan outside of the Super Rugby season and Wallabies Test commitments.

Former rugby league star and AFL player Folau has been in huge demand from French rugby and NRL clubs and confirmation of his long-awaited deal to stay in union comes as a huge relief to the Wallabies.