The Reds pulled the pin on contract negotiations with their most-marketable face late on Sunday night, saying they simply couldn't accommodate Cooper's "unrealistic" demands after months of talks.

Cooper has already pledged his future to French champions Toulon, where he has the option of taking up a lucrative two-year deal that would financially dwarf anything that could be offered on home soil.

Yet rugby powerbrokers are convinced that Cooper has a desire to remain in the Australian game and was still strongly considering a long-term deal that would lock him in for four years, part of which could include a headline stint on the playing fields of Rio De Janeiro.

Cooper's close friend and management stablemate under Khoder Nasser, Sonny Bill Williams, looks certain to be part of New Zealand's Olympic plans in Sevens Rugby, giving fresh hope that Cooper could yet tread the same path.

It is believed there are factors built into the ARU's deal that would allow that to take place even if his retention for XVs rugby remained the over-arching priority. On that front, he needs seven Tests to qualify for the new rule that allows overseas-based players to be selected.

Wallaby coach Michael Cheika remains a fan of Cooper and despite another injury-riddled campaign for the Reds, there's little to suggest Cooper has gone off the radar in terms of the Rugby Championship and the World Cup later this year.

Cheika said the ARU offer remained on the table and Cooper, who has just purchased a multimillion-dollar property in inner Brisbane, had yet to decide on his future path with the national body.

"We have been discussing seriously with Quade and his management about a long-term deal to play his rugby in Australia, so obviously I am disappointed reading the papers this (Monday) morning," Cheika said.

"I know we've tabled a really fair offer which Quade has been strongly considering.

"The ARU wants Quade to continue playing in Australia. If he does eventually go to France and is playing well enough, who knows, he may well be selected via the 60 cap rule if he is available."

Rob Clarke, the ARU's general manager, made no secret of the fact that Cooper would be a target for the Sevens team at the Olympics.

"We would love for Quade to continue to play his rugby in Australia and we make no secret of the fact that we are looking to bolster our Sevens squad for our Rio campaign, however what we have put in front of him is a long-term deal that looks well beyond 2016 and the Olympic Games," Clarke said.

"We respect the QRU's position but ultimately he is now a free agent and has to consider a new landscape.

"The decision sits with him as to which road he wants to take but he will do so knowing that the head coach of the Wallabies and the ARU is fully supportive of Quade playing for Australia, from Australia."

Australia's Sevens campaign has stuttered throughout the Rio qualification process and a player of Cooper's profile would be solid gold promotional material for Australian rugby during the Olympic cycle, particularly if New Zealand roll out big guns like Williams and Liam Messam.

The Australian Olympic Committee wouldn't mind either, giving it another star to help promote the Rio campaign, which begins on August 5 next year.

Meanwhile, should Cooper take up Sevens then opt to return to Australia rather than play in France, the hardline stance of the Reds opens up the possibility of him linking with another Australian Super Rugby franchise.

That would have been unthinkable for a man who has spent his entire career on a magical mystery tour with his beloved Queensland.