Ms Hickey announced on Friday after days of negotiation with Premier Will Hodgman and government ministers she would still serve as part of the government after she issued a threat on Sunday to quit the party.

A decision to leave the party would have plunged the government into minority.

Her allegiance was sweetened by the government's commitment to build a 50-bed drug and alcohol centre in the south with transport linkages to allow the facility to be used by people from around the state.

Ms Hickey said there was also a commitment from the Premier of fortnightly meetings between the two and more access to government information and ministers.

She said she reached her final decision on Thursday night.

"I gave being an independent some really serious thought," Ms Hickey said.

"I weighed up what was in the best interests of the community, what was in the best interests of the government, and what was in the best interests of myself."

She said she would not guarantee she would remain with the next three years.

"Who knows what is going to happen over the next few weeks or the next few months," Ms Hickey said.

"If I'm not happy about something, I think everybody is going to know.

"We're talking about another three years of this government and I think everyone has learnt their lessons, including me, that there are better ways to do things.

"I would like to see us work together ... for a better government."

She said she believed she held the balance of power but would not abuse it and would continue to cross the floor to vote against the government if negotiations prior to a vote did not yield an outcome she agreed with.

Mr Hodgman said the best way the government could deliver good policies was for all members to work together.

Labor leader Rebecca White said the Speaker's announcement meant nothing had changed and the government remained in chaos.

"She's said quite clearly the government is surviving fortnight to fortnight," Ms White said.

Greens leader Cassy O'Connor expressed displeasure with Ms Hickey's decision.

"People will scratch their heads a bit given the level of discontent and the things she has said about her colleagues," she said.

Tasmanian Chamber of Commerce and Industry chief executive Michael Bailey said members had expressed concerns over the prospect of a minority government and heralded Ms Hickey's decision as good news.