However there is now debate about the type of testing required, with a test used internationally since 2010 proving unreliable.

Consultancy group Deloitte Australia has been asked to review the TR4 banana test process.

Australian Banana Growers Council chairman Doug Phillips said banana farmers need to "remain vigilant and check their farms."

The Mareeba farm was the second north Queensland banana farm where Panama Tropical Race 4 disease had been identified in 2015.

The five-week quarantine of the property has been lifted.

However the first farm near Tully is still under quarantine after the root-destroying disease was initially discovered in March 2015.

The Mareeba farm was cleared on Tuesday morning by Biosecurity Queensland inspectors.

Australian Banana Grower's Council chairman Doug Phillips said news the Tully farm had tested negative was excellent news for the Mareeba grower and his family.

"It's great news for the banana industry," Mr Phillips said.

"However, growers need to remember there is still one case of TR4 on a Tully Valley farm," he said.

"And this result has been confirmed using the highest level of TR4 testing available. Growers need to remain vigilant and continue with their on-farm biosecurity measures."

Acting Chief Biosecurity Officer Malcolm Letts said the first test at Mareeba was a "false positive".

The "positive" was identified by a form of testing that had been used since 2010.

However a more thorough testing – using more complex surveillance and test samples from the farm - showed the farm did not have Panama TR4 disease.

Mr Letts said extensive investigation by Biosecurity Queensland's diagnostic team showed the first type of testing was now unreliable.

"To our knowledge this is the first time there has been evidence of a problem with this diagnostic test anywhere in the world," Mr Letts said.

"As a result, Deloittes has been engaged to conduct an independent procedural review of all Panama disease diagnostic systems and processes used by Biosecurity Queensland and the University of Queensland.

"That work has commenced and is expected to be completed next month."

The Queensland Government on Tuesday committed to reimburse to the farmer the net revenue lost when each of the quarantined properties was unable to trade.

Mr Letts said there was no doubt about the banana infection at the first farm at Tully.

"To date, 12 diagnostic tests including visual, molecular and biological testing conducted on a range of samples from the Tully property have all been positive," he said.

"However, for the Mareeba property the outcome is different. When a culture was unable to be grown from the original sample, we took more plant samples from the property. A range of testing could not confirm the original positive diagnosis."

Further information from Biosecurity Queensland on 13 25 23, or call the Exotic Plant Pest Hotline on 1800 084 881.

Banana facts

• More than 90% of Australia's banana production is in north Queensland.
• Other production areas are in south-east Queensland, northern New South Wales, Western Australia and the Northern Territory.
• The annual farm gate value of banana production in Australia as at 2014 is about AU$600 million.
• The total area of land producing bananas  in Australia is about 14,000 hectares.
• Bananas is Australia's single biggest horticulture industry and the largest horticulture industry in Queensland
• Bananas contain potassium, vitamin C, vitamin B6, folate, niacin and riboflavin.