Tuqiri has been left on the sidelines by Wallabies coach Robbie Deans in recent weeks © Getty Images

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Players/Officials: Sam Norton-Knight | John O'Neill | Lote Tuqiri

Teams: Australia | New South Wales Waratahs | Waratahs

Lote Tuqiri's rugby union career is hanging in the balance after the Australian Rugby Union (ARU) revealed that they were terminating the winger's contract with immediate effect.

The 29-year-old Tuqiri, one of the Wallabies' highest earners, has indicated that he will fight the charge and is set to launch immediate legal action against his employers.

"All I can tell you is that Lote disputes that the ARU are entitled to terminate his contract and he has retained solicitor Mr Mark O'Brien and Mr Tony Marr, senior counsel, to immediately commence proceedings against the ARU," his agent Les Ross told the AAP.

The ARU announced that they were sacking the Waratahs' speedster this morning but they did not disclose a reason for their decision.

"The employment contract of Lote Tuqiri has been terminated effective today," the ARU said in a statement. "ARU has treated this issue as a standard employment matter. The ARU will not make any further comment on the matter as it may be the subject of legal proceedings."

Reports suggest that the move is part of a wider effort by the ARU to clamp down on indiscipline within the international set-up. Wallabies trio James O'Connor, Quade Cooper and Josh Valentine were fined after a food fight in a hotel and there had been warnings that further sanctions could be forthcoming.

Tuqiri is one of Australia's highest paid and profile players and was contracted to the ARU until 2012. He has played 67 times for the Wallabies scoring 30 tries and in 2007 signed a lucrative deal to ward off interest from National Rugby League club, South Sydney.

There was speculation that the latest ARU investigation was based on an alleged late night visit to the Crown Casino in Melbourne ahead of last month's Test against Italy, which also reportedly involved backs Adam Ashley-Cooper and Peter Hynes. Another web-based report suggested that four high-profile rugby players were involved in a serious off-field incident while yet another said that Tuqiri had been issued with a "final warning letter" after a late-night drinking session with Wallabies team mates in 2007.

The ARU have refused to comment further but chief executive, John O'Neill, will face the media on Thursday when the Australian squad for the Tri-Nations is to be announced.

Tuqiri, at times a controversial figure, has been involved in a number of incidents away from the field in past since he switched codes from the NRL club Brisbane in 2003. In 2005 he was involved in the infamous "ice-throwing" incident in Cape Town which resulted in Matt Henjak being sent home. He was fined A$500 and given a suspended two-match ban following his involvement.

He was sent home from a Wallabies training camp at the beginning of 2007 for failing a fitness test and months later apologised to Waratahs team mate Sam Norton-Knight after pushing him during a Super 14 clash. Six months later he was banned for two matches and fined A$20,000 for failing to attend a team medical and registering an alcohol reading at a team breath test.

Later the same year he was forced to issue another apology, this time to Wallabies selector Michael O'Connor, for putting a private conversation on speaker-phone as O'Connor was being critical of the Waratahs' Peter Hewat.

Tuqiri's form suffered during a disappointing Super 14 season with the Waratahs and he was subsequently omitted from the Wallabies' first four internationals of the year. However, coach Robbie Deans said earlier this week the veteran could still feature in his plans.