David Hutchinson will resign as Queensland LNP president less than two months after quitting his role as a consultant for rival politician Clive Palmer.
Mr Hutchinson came under fire in June for working for Mr Palmer, while also holding a volunteer position as president of the Liberal National Party.
LNP leader Deb Frecklington said on Saturday she respected Mr Hutchinson's decision to resign as president.
In June, damning polling on Ms Frecklington's popularity was leaked from LNP headquarters, throwing her leadership into question just months out from an election.
The finger was pointed at Mr Hutchinson and the so-called "backroom boys" of the party.
It raised the ire of Home Affairs Minister Peter Dutton who called for Mr Hutchinson to resign, saying his position was untenable.
Since January, members of the LNP's parliamentary team have expressed concern over Mr Hutchinson's dual roles.
Some had called for Mr Hutchinson to choose between his job with Mr Palmer and his volunteer role as president, saying they were incompatible.
In the weeks before last year's federal election Mr Hutchinson, then acting LNP president, struck an in-principle deal with Mr Palmer to put him second on the party's how-to-vote cards.
Australian Associated Press