The vice postulator of Sister Mary McKillop's case for sainthood, Sister Maria Casey, says in 1993 the woman was told she had weeks to live.
However the woman prayed to Mary MacKillop and 10 months later there was no sign of the cancer.
Sister Casey says this may be the miracle needed for Sister McKillop to become a saint.
"We cannot yet say if this is a miracle, it's a cure that's under investigation," she said.
"But the fact that this is under investigation is very exciting and this means that it's a step forward in the process towards canonisation."
Mary MacKillop was beatified in 1995 for the cure of a woman from leukemia.
Sister Casey says a second miracle must be verified before she can become a saint.
"Now over the years, we have searched and looked at many cures," she said.
"But not all of them have met the criteria required by Rome.
"This case however seems to meet the criteria and the Vatican is now looking into it in greater detail."
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