In a statement released by the organisation on Tuesday, it's alleged the woman 'was engaging in misleading and deceptive conduct, making false representations that she had a terminal cancer diagnosis'.
The woman worked as a coordinator, helping to raise funds for cancer patients.
She began working with the charity in 2007 as a fundraising participant, becoming an employee in 2014.
She resigned in February this year after advising her cancer had returned in 2017.
'Our thoughts are with those who have been impacted by this alleged false misrepresentation and all those who are truly impacted by a chronic disease,' the Cancer Council Queensland said in a statement.
The matter has also been referred to police.
7NEWS.com.au has contacted the woman for comment.
This article originally appeared on 7NEWS and has been re-published here with permission.