Wallabies flanker Wycliff Palu has been given a suspended sentence by a Sydney court after being caught driving without a valid licence for the second time in two years.

The NSW Waratahs star appeared before Sydney's Downing Centre Local Court on Wednesday after he was caught by police driving with a suspended licence in January.

The 26-year-old was placed on an 18-month good behaviour bond and ordered to pay a fine of more than $1,000.

He was also warned by the magistrate if he drove again without a licence, it would be very hard to avoid a jail term.

"I deeply regret my serious error in judgement in relation to the charges that were brought against me by the court. I now understand the seriousness of the offence," Palu said in a statement.

"I fully respect and will abide by the ruling of the court with relation to my offence and will ensure I never find myself in this position again.

"I am now looking to put this incident behind me and am focusing on helping the Waratahs qualify for this year's Super 14 semi-finals and on returning to the Wallabies team."

Waratahs manager Chris Webb says Palu understands the gravity of the situation.

"Wycliff has accepted the court's decision and understands the seriousness of the outcome," he said.

"We will work with Wycliff to ensure he never finds himself in this position again and that he gets on with what he does best - playing great rugby for the Waratahs and Wallabies."

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