Bernard Foley has inked one of the ARU's flexible contracts © Getty Images

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NSW Waratahs and Wallabies fly-half Bernard Foley has become the first player to ink one of the Australian Rugby Union's (ARU) flexible contracts in extending his current deal through to the end of 2018.

Foley will remain with the Waratahs for the next three Super Rugby seasons and will also be permitted to spend two seasons in Japan. The deal also means Foley remains eligible for the Wallabies, though he will likely sit out the 2016 spring tour to play in Japan.

The 25-year-old playmaker has blazed a trail that is likely to be followed by Western Force No.8 Ben McCalman and, possibly, Wallabies fullback and dual-code superstar Israel Folau. The ARU approved the use of "sabbaticals" or flexible contracts last year, realising they had to find different ways to retain top players in the face of the massive money of offer in Europe and Japan.

"I have an incredibly strong desire to continue representing Australia and the Waratahs, and this deal allows me to do that for at least another three years," Foley said via an ARU media release.

"I'd like to thank Australian Rugby and the Waratahs for understanding my desire to experience a new culture and rugby environment in Japan, while continuing to provide me an opportunity for represent my state and country."

NSW Waratahs CEO Greg Harris said the retention of Foley on a flexible contract was a positive outcome for both the Waratahs and for Australian rugby.

"Bernard is an outstanding talent and an integral part of our team," Harris said. "It is essential for the Waratahs that we lock away the spine of the team and retaining Bernard, along with Nick Phipps, is a crucial part of this exercise."

Foley is the incumbent Wallabies fly-half after cementing himself as the first-choice No.10 under first Ewen McKenzie, and then Michael Cheika on last year's spring tour.

The Wallabies and Waratahs coach said the ARU's flexible contracting system wouldn't be extended to everyone and backed players to make a smart decision when it came to their individual workloads.

"Flexible contracting is taken into consideration for exceptional circumstances, and I am confident that he will put his own well-being at the front of his priorities and thinking," Cheika said. "Bernard is a playmaker who is still yet to reach his full potential and we need our best players eligible for Australia - now and in the future.

"Bernard is one of many playmakers in Australian rugby that will be vying for a Wallabies jumper over the next period. This is the environment we will be creating - where players can challenge one another and ultimately make the Wallabies program stronger."