Australian rugby was awash with rumors last night that the out-of-court settlement reached between Lote Tuqiri and the Australian Rugby Union would see the former Wallabies and Waratahs winger paid $2 million.

The tight secrecy that has prevailed ever since Tuqiri's $900,000-a-year-contract was torn up by the ARU on July 1, following an alleged breach of the players code of conduct remains in place, with details of the settlement, is subject to strict confidentiality clauses.

Whatever damages settlement Tuqiri receives would be tax-free and the 29-yar-old winger described him as being "over the moon" at the settlement, which requires him to discontinue his legal proceedings against the ARU and the NSWRU.

But Tuqiri's professional rugby days in Australia are over.

ARU boss John O'Neill said despite Tuqiri being linked to the fifth Australian franchise in an expanded Super 15 tournament from 2011, he would not be allowed to play for that team or any other Australian professional side.