Cricket writer and prominent transgender figure Catherine McGregor has succeeded in her bid to be removed from the Australian of the Year honour roll, after a spat with national recipient David Morrison.

Ms McGregor was the Queensland Australian of the Year in 2015, but her old boss, former Army chief General Morrison, was named the national recipient.

In a series of tweets, Ms McGregor announced she was pleased to learn the council would remove her name from the honour roll.

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A statement released by the Australian of the Year Council said it would remove Ms McGregor's name and add a note explaining she relinquished the award, but it would not be rescinded.

"In November 2016 she requested that she relinquish this honour. This is a matter for her and the National Australia Day Council will not be rescinding the award," the statement read.

"However her request has been noted and the honour roll is being updated to reflect this.

"The Australian of the Year awards are all about recognising amazing Australian stories.

"We believe Catherine's is a story that deserves to be told and recognised."

'I should never have accepted the award'

Ms McGregor called the awards a "farce", and expressed regret at accepting the award in the first place.

"I should never have accepted the award in the first place, glad that in future years there will be no record I was involved," she tweeted.

When General Morrison received the national award, Ms McGregor slammed the decision in an interview with the Star Observer magazine, alleging the council did not have the "courage" to select an LGBTI recipient.

She later retracted the comments, but has since also criticised General Morrison over his cancellation of an address amidst questions over his knowledge of the 'Jedi council' sex scandal while he was in charge of the Army.

Ms McGregor previously worked as General Morrison's speechwriter, and was responsible for his lauded speech on respect and equality in the armed forces.