The head of Queensland Heath is stepping down after his department recommended criminal penalties for staff who disclosed "inappropriate" information to journalists.

Director-General Shaun Drummond has sent Premier Annastacia Palaszczuk a letter saying he will step down at the end of the month.

She said it was his own decision and a matter for him.

"I thank him for the extraordinary work he has provided to the Queensland government," she told reporters on Wednesday, adding he had served well in a "very, very difficult job".

Mr Drummond is stepping down a Queensland Health submission to a review of public disclosure laws was made public.

The submission, which carried his name in the cover letter, proposed criminal penalties against staff who disclosed inappropriate information to journalists.

"Consideration could be given ... to include penalties for inappropriately disclosing relevant information to journalists where a department is dealing with the matter," the submission said.

The proposal sparked concern amongst the media and bodies such as the AMA that whistleblowers who exposed problems in the state's health system could be penalised.

It also earned a rebuke from Health Minister Shannon Fentiman, who ruled out such a move.

Mr Drummond later backed away from the submission, saying in a letter to the Courier Mail published on Wednesday that the submission was from the department and not him personally.

He said it was "not calling for penalties for those who disclose information to journalists".