Hansen agreed that Folau would be a loss to the Wallabies if Rugby Australia were to terminate his contract.
Folau remains stood down by RA over his religiously-motivated posts last week proclaiming hell awaits "drunks, homosexuals, adulterers, liars, fornicators, thieves, atheists and idolaters".
But that deal has now been ended and Folau now has 48 hours to decide whether to accept his punishment or face a code of conduct hearing.
"At its core, this is an issue of the responsibilities an employee owes to their employer and the commitments they make to their employer to abide by their employer's policies and procedures and adhere to their employer's values".
8 Billy Vunipola was formally warned about his future conduct by his club side Saracens after defending an anti-gay post published on Instagram by Australia rugby star Israel Folau.
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While many people, including some past and present players, chastised the 30-year-old for his posts, others said he was exercising his freedom of expression and sharing the beliefs of his faith - citing scripture that supports his comments. "We appreciate that this particular matter will attract significant interest, but due process must be followed".
Geelong champion Gary Ablett and Carlton midfielder Matt Kennedy have been embroiled in the Instagram scandal that is set to end Israel Folau's rugby career as Wallabies coach Michael Cheika and captain Michael Hooper weighed in on the furore.
"Getting out in that disrespectful manner publicly is not what this team is about", Cheika said.
The Waratahs player, who was expected to represent Australia at this year's World Cup, is expected to have his contract terminated for his social media post. You do not pick and choose. If that's not to continue playing, so be it.
"Anyone who knows me, knows I live with kindness and love towards ALL people".
Folau, 30, said he had no intention of retracting or apologizing for his comments about gay people which, he insisted were based on his Christian beliefs.
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The sporting authority noted that Folau had been previously warned not to share any offensive content after posting a similar message previous year.
"I'll stand on what the Bible says".
"I can see that my recent post has hurt people".
'I have faith. My Christian faith has sustained me through the ups and many downs of my life. That's the message I'm trying to share, even though it comes across as harsh.
"He firmly believes it so he's just missing one piece of the jigsaw puzzle I think".
"It's obviously a decision that's in the process right now but I believe in a God that's in control of all things".
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Cheika said Folau, who is facing the sack by Rugby Australia for saying "Hell awaits" homosexuals, was unlikely to play for him again in an Australia shirt.