The Australian president of the United Nations Association says Queensland Premier Peter Beattie would be foolish to sack the Palm Island Community Council.

In State Parliament yesterday Mr Beattie said he would consider whether the north Queensland council could continue, saying the council was accusing him of bribery.

It is the latest development in an ongoing dispute resulting from a death in custody on the island last November.

Former ALP senator Margaret Reynolds says the only solution now is professional, independent mediation.

"Sacking councils should only ever be used in the most extreme of circumstances and from what I know of the situation on Palm Island there is absolutely no cause for such an extreme measure