The 51-year-old had pleaded guilty to three charges relating to two separate drunken incidents, including resisting arrest and intimidation.
In the second incident, nine police officers were needed to arrest the 190-centimetre tall dual international winger after he abused a taxi driver in Wollongong.
But he was given a reprieve in Sydney's Downing Centre Local Court on Friday when the magistrate said his progress in turning around his alcohol addiction was promising.
The hearing got off to a bumpy start, with a delay in Sailor's train from Wollongong meaning he arrived 15 minutes late.
"I apologise, my train was late, I'm so sorry," Sailor said to magistrate Jennifer Atkinson.
Sailor's fortunes changed for the better once proceedings commenced, as Ms Atkinson found he has made good progress since the incidents, having been on medication for several months to treat both depression and alcoholism.
The charges were dismissed under mental health legislation and Sailor was discharged to the care of his local doctor.
While agreeing to dismiss the charges, Ms Atkinson warned the football legend to stay on the straight and narrow.
"What is important is you actually doing something about where things are going," Ms Atkinson told Sailor.
The two drunken incidents that led to the charges had been a necessary wake-up call to prompt him to seek help, she said.
The former Wallabies player became agitated when talking to another man at a bar in Sydney's city centre after 8.30pm on November 6, 2024, according to the agreed facts.
After the bar's manager threatened to call police, Sailor replied: "Do you know who I am? You're f***ing done."
Police spoke to him outside the bar before he spotted the man whom he accused of trying to fight him and gave chase before being arrested, court documents state.
He was subsequently granted bail in May 2025 on conditions that included a prohibition on being intoxicated in public.
But the premiership-winning NRL star ignored the restriction when he went to a sports bar in Wollongong and drank a large volume of alcohol on December 5, 2025, according to the agreed facts.
Police were called after he became aggressive with a taxi driver and found Sailor stumbling and swaying in the middle of the road.
He smelled strongly of alcohol and was slurring his words as he abused officers, the agreed facts state.
Sailor resisted nine officers before eventually being taken into custody, where the agreed facts say he continued to be aggressive and hostile.
Speaking outside court, Sailor's lawyer said he was satisfied with the result.
"My client's very pleased with the outcome and his unblemished record remains intact," Adam Houda said.
Sailor represented Australia in both rugby codes, distinguishing himself as the top try-scorer when the national side won the Rugby League World Cup in 2000.
He also proved a prolific scorer during a four-year rugby union stint, crossing 13 times in 37 games for the Wallabies and earning a start in the 2003 World Cup final.
He finished his 222-game NRL career in 2009 after nine seasons with the Brisbane Broncos and two seasons with St George Illawarra.
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