Queensland's beleaguered Chief Justice Tim Carmody has resigned after a controversial term as the state's top judge that lasted just under a year.

He offered his resignation in May on the condition the Government agree to overhaul the "festering" judiciary, including a judicial commission.

Justice Carmody announced his resignation in a joint statement with Attorney-General Yvette D'Ath.

"We are pleased to be able to announce a dignified end to the controversy that has involved the Chief Justice and other judges of the Supreme Court in recent times," the statement said.

"Consistent with Justice Carmody's offer and in a generous and gracious gesture for the greater public good."

Justice Carmody will remain as a Supreme Court judge and will serve as a supplementary judicial member of the Queensland Civil and Administrative Tribunal (QCAT) from Thursday.

Ms D'Ath said that when the presidency of QCAT became vacant, she would give favourable consideration to appointing Justice Carmody.

Ms D'Ath did not elaborate on whether Justice Carmody asked for the QCAT role, or if she offered it.

Despite Justice Carmody's conditional offer to resign in May, Ms D'Ath never offered a commitment.

She said she had no influence over Justice Carmody's resignation, but said it displayed his strength of character.

"It has been a very difficult time for the Chief Justice and his family and we should acknowledge that and give his family some privacy," she said.

"These are difficult issues, this is unprecedented, the circumstances that we face.

"I believe that this is in the best interests [of] the court, to rebuild the confidence in the judicial system and strengthen the legal system in this state.

"I believe this is drawing a line in the sand."

Government will not be rushed into replacement: D'Ath

The Government will provide a mediator to help rebuild the judicial system.

Justice Hugh Fraser, currently the acting Governor, will also be acting Chief Justice until a new appointment is made.

Ms D'Ath said she would not be rushed into making a decision on who will be Queensland's new chief justice.

"It is a very serious decision, it needs proper thought and consultation," she said.

It has been a rocky road for Justice Carmody since he was sworn in on July 8 last year.

He was promoted under the former Newman government from Chief Magistrate to Chief Justice, despite never serving on the Supreme Court.

The state's second most powerful judge, Court of Appeal president Justice Margaret McMurdo, said she would not sit with him on any case, and Justice John Byrne is reported to have secretly recorded a conversation with him.

Justice Carmody returned to work on Monday after taking more than a month's sick leave, for which he cited a bad back.

Queensland Council for Civil Liberties vice president Terry O'Gorman said the resignation was inevitable.

"His appointment was botched and botched badly by the previous premier, Campbell Newman, and the previous attorney-general Jarrod Bleijie," he said.

"It's no doubt a personal disappointment for Mr Carmody, but in terms of the institution of the Supreme Court, it's the only action he had open to him."

Opposition Leader Lawrence Springborg said Justice Carmody would continue to make a "very significant contribution" in the Supreme Court.

"He's someone who has assisted a number of commissions of inquiry ... and has successfully run some, specifically in relation to child safety in Queensland," he said.

"He made some profoundly significant and eminently sensible recommendations that are now being implemented.

"We also know he will go on to make a very significant contribution over a long period of time in the Supreme Court."

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