The Volleyball Australia vice-president had served in the role for three years but Gold Coast 2018 said her contract has not been renewed.

Palm is understood to be taking legal action following the decision. 

"Gold Coast 2018 can confirm that the head of sport is no longer employed under the terms of her contract," organisers here told insidethegames.

"As this is now a legal matter there will be no further comment."

Gold Coast 2018 chief executive Mark Peters told insidethegames the situation was normal at this stage of the process as the organisation of the Games continues into its final year.

He expressed confidence in the four general managers of sport currently in place, a team led by Nancy Romano, the executive manager of sport and operations.

Peters claimed Gold Coast 2018 were "very happy" with progress heading into the final year of preparations.

As well as Gold Coast 2018, Palm had acted as the sport services manager for both the Sydney 2000 and Athens 2004 Olympic Games.

According to Fairfax Media, Palm said she had not been given a reason for her contract not being renewed.

"It has been a privilege and I consider it a great responsibility to have led sport for the Gold Coast Commonwealth Games," Palm said.

"I have worked with confidence and persistence for sport and the athletes over the past three years in a challenging bureaucracy.

"The sport director position is highly political and in some respects a poisoned chalice.

"I wanted to make a difference for the Gold Coast Games and I believe I have done so.

"I will proudly sit back and watch the sport team I have nurtured deliver a really special Games."

Gold Coast 2018 chairman Peter Beattie told insidethegames that, despite Palm's departure, the organisation was in a good place heading into the final year.

He promised that Gold Coast 2018 were not taking anything for granted, however.

"We know that Mark has got to run a good team and he is doing a really good job," Beattie told insidethegames.

"We will support those decisions that he makes.

"We are in a good place, we still have a lot to do.

"The venues are nearly completed and the one year out launch has gone really well.

"I give us a nine-and-a-half out of 10, but only because I am paranoid.

"There is still a lot of work still to be done, but we do not take anything for granted."