Mr Spence, chairman of engineering consultancy PeakUrban, said his role in the property development industry prevented him from lawfully playing an active role in the leadership and management of the LNP.

The Palaszczuk Labor government last year passed laws banning property developers from giving political donations at a state and local government level.

The LNP is challenging those laws in the High Court, which in recent days advised the case would be delayed for a few months.

Mr Spence said that meant there was no prospect of a court decision before the next federal election.

However, he said there were "good grounds" the party would win the challenge.

"The decision was made on Wednesday evening this week, when I received advice that if I was to do the job of LNP president that needs to be done [in the lead-up to the election], that I was at extreme risk of going to jail for two years," Mr Spence said, speaking after an emergency meeting held on Friday.

"The legislation says that if you're a prohibited donor, then you are prohibited from soliciting funds for a federal election, or state election or any election for a political party.

"So the job of an LNP president is to raise funds to fight the incoming election, and I just simply cannot afford the risk of being prosecuted and going to jail.

"One wonders whether we're in North Korea, perhaps we're in Zimbabwe."

Mr Spence said his decision to quit the unpaid position had nothing to do with the reaction to his speech at the state council meeting in Bundaberg in November, during which he reportedly said MPs should not be able to hide behind a conscience vote to defy the party on core values and they should be held accountable.

It came after three LNP MPs, Tim Nicholls, Steve Minnikin and Jann Stuckey, exercised their conscience vote to support abortion reform legislation.

"The gratifying thing after my speech is that the support from our party members has been overwhelmingly strong," Mr Spence said.

"The only thing that is relevant here, and the only thing on my mind in making this decision, is that the Labor Party have instituted what is a financial gerrymander and made it impossible for me to do my job in the lead up to the next federal election."

Mr Spence will resign as state president at the next meeting of the state executive on Tuesday, when an acting president will be chosen.

He will stay on the state executive as the immediate past president.

LNP vice-president David Hutchinson is understood to be a contender for the role, while there was likely to be three or four potential candidates, with some members agitating for party elder Lawrence Springborg, who quit at the state election.

However, Mr Springborg had reportedly told confidantes he did not want the job.

Mr Spence joined the Liberal Party more than 30 years ago when he was 23 years old.

LNP leader Deb Frecklington thanked Mr Spence for his service.

"Mr Spence is passionate about the LNP and his work to merge the party and his service should never be forgotten," she said.

"I wish him, his wife Sabrina and his family all the best for the future."

Premier Annastacia Palaszczuk said Mr Spence's resignation was a matter for the LNP.

"Doesn't bother me," she said.