Catalans Dragons have agreed to release dual-code international Israel Folau from his contract, allowing him to resume his career in Australia.
The 32-year-old centre had announced his intention to join Queensland-based side Southport Tigers last month.
Queensland Rugby League refused to ratify the move because he was still contracted to his Super League club.
Folau signed an extension with Catalans for 2021 but the club has agreed to release him with immediate effect.
Catalans had initially been considering legal action, with the French side club’s football manager Alex Chan saying last month he was “shocked” by news of Folau’s bid to make a playing return in Australia.
But they have now decided to end his contract with immediate effect after Folau told Catalans of his intention to stay in Australia for “a personal family situation”.
Folau, whose brothers play for Southport, joined the Dragons in 2020, making 15 appearances.
He previously played in the NRL for Melbourne Storm and Brisbane Broncos from 2007-10, before switching to Aussie rules and then rugby union.
Folau was sacked Rugby Australia in 2019 for making homophobic comments and he returned to rugby league in 2020.