The Super League side announced the arrival of former Australia rugby union international Folau, 30, on Wednesday (AEDT).
Folau was sacked by Rugby Australia after controversial social media posts suggesting homosexuals were destined for hell. He also suggested Australia's deadly bushfires were God's punishment for legalising abortion and same-sex marriage.
Folau sued Rugby Australia in search of $14 million in compensation, for unfair dismissal, settling out of court with the governing body.
The Rugby Football League has made it clear that if he transgresses in its code, his contract will be immediately terminated, a deal struck with the Dragons as a condition of his signing.
In a statement, Super League Executive Chairman Robert Elstone said the League "deplores the homophobic comments Israel Folau has made in the past, which squarely contradict our sport's core values".
"I have sought the opinion of informed voices connected to our game, and the majority share my disappointment that one of our clubs has chosen to sign him.
"There is a strong feeling that the decision to sign him lets down many people connected to our sport."
Folau reiterated his beliefs upon announcing his move, but also acknowledged the views of those not happy about his move.
"I acknowledge the views expressed by Super League and the Rugby Football League," a short statement from Folau read.
I'm a proud Christian, my beliefs are person, my intention is not to hurt anyone and I will be making further public comment about them.
"I look forward to my return to the great game of rugby league with the Catalans Dragons."