'Asics is dedicated to sport and its healthy contribution to society, ' the Asics statement said.
"For any strong Australian brand or organisation, you've got to stand for what you are and with rugby, it's the pillars of integrity and respect and teamwork and the inclusiveness we champion", Mitchell said.
"As such, our partnership with Israel has become untenable and he will no longer represent ASICS as a brand ambassador".
Folau, a devout Christian, said on his Instagram account that "hell awaits" for "drunks, homosexuals, adulterers, liars, fornicators, thieves, atheists, idolators".
Folau now looks set to have his four-year, $4million contract terminated by the governing body after they found he was guilty of a "high-level breach" as a result of his actions and behaviour.
Rugby Australia said in a statement last night: "The panel will now take further written submissions from the parties to consider the matter of sanction".
Insiders estimate that Folau has already outlaid in excess of $100,000 on legal representation for his landmark code of conduct hearing, the three-time John Eales Medallist may at some point ask himself if it is all worth it.
Jones, who coached the Wallabies during a golden era in the late 1980s, has been a frequent critic of Rugby Australia and one of the staunchest defenders of Folau's right to free speech.
'We will take this fight every inch of the way.
"The thing with Cheik is that he's passionate and like has been mentioned before, he's well off otherwise and he's doing this because he's passionate about it and I think that's a really good position to be in", he said. "My head is held high".
Immediately following the initial backlash from Folau's comments last month, Australian Beer Company general manager, Tony Scanlan, said Folau's comments are totally unacceptable, but they will remain partners of Rugby Australia and the Wallabies.
Folau's perceived lack of clarity on what he could and couldn't say and "loving" intentions toward sinners led to Farr-Jones changing his mind.
Qantas boss Alan Joyce has added his opinions to the ongoing debate surrounding Folau, stating he supports Rugby Australia's hardline approach to dealing with Folau's social media use.
The post, which is still live on Folau's page, declares "WARNING", before listing a number of sins which must be repented of, pending eternal judgment. We've seen it many a time before - not just in rugby but in other codes - where some rules apply for some players and not others due to their impact on the game.
Earlier this week, director of Rugby Union Australia Scott Johnson, said he supported Rugby Australia's stance.
"I would say in a nutshell Israel loves the person, he hates the sin".