The Olympic gold medallist will be shopping for a car having been dumped by luxury car sponsor Jaguar following the much publicised homophobic slur posted on Twitter earlier this week.

Rice, 22, posted the controversial tweet on the social networking site following the Wallabies' win over South Africa on Saturday night.

Following the Wallabies' last-gasp win over South Africa on Saturday night, Rice tweeted: ''Suck on that faggots!''

Jaguar Australia's marketing and public affairs manager Mark Eedle confirmed that the company's sponsorship of the swimmer has been terminated.

"We made a decision yesterday, and we've terminated the agreement with her," Eedle said.

It's not known whether the Jaguar agreement involved any financial payment, but Rice will be without a car after the company confirmed it will be confiscating the $100,000-plus Jaguar XF that Rice had been in possession of since the sponsorship deal was penned in February.

"We will be taking the car that she's been using back," said Eedle.

Rice was the only sporting personality Jaguar had a sponsorship agreement with, and Eedle said the company has no immediate plans to get behind any other athletes following the incident.