According to tabloid reports Goody was called to the diary room and given the news by phone by her consultant.
The Sun claims she had had hospital tests earlier this month after suffering four mystery collapses.
On hearing the news Goody broke into tears and ran out to tell her housemates on 'Bigg Boss', which started on Sunday, "I have cancer".
The show was not live at the time and the scenes will not be broadcast in India.
The 'Big Brother' star is believed to have agreed a £100,000 deal to appear on the show. She joined in an attempt to make amends for her attacks on Bollywood star Shilpa Shetty on last year's 'Celebrity Big Brother', which many thought were racist. Shetty is the host of 'Bigg Boss'.
Goody was previously given the all-clear after cancer scares in 2004 and 2006.