Quade Cooper has reportedly quit Australian rugby after being offered a meagre incentive-based contract.

According to Channel Nine the former Wallabies five-eighth has turned his back on the Australian Rugby Union and the Wallabies and will look to continue his career overseas or switch to rugby league.

Cooper has a Super Rugby contract with Queensland but that agreement is contingent upon a contract with the game's governing body.

The controversial playmaker has been at odds with the ARU for several months over his comment on the Wallabies set-up, including claims of a `toxic" environment under coach Robbie Deans.

Three weeks ago Cooper was hit with a $40,000 fine and a suspended playing ban in a code-of-conduct hearing into his comments.

Reports on Monday of Cooper's decision to leave Australian rugby behind came after he was only offered an incentive-based contract by the ARU, of the kind usually reserved for international rookies.