Ms Goodwin, 47, was rushed to hospital yesterday and was found to have "multiple tumours", Mr Hodgman told a press conference this morning.
Mr Hodgman said it was clear Ms Goodwin would be unable to fulfil her duties and he would be taking over her portfolios of Attorney-General, Justice, Corrections, and Arts.
"These shocking things put everything in perspective. Health and welfare of all politicians is important," he said.
"It will be a difficult time for the Government."
Mr Hodgman described Ms Goodwin as a "warm-hearted, hardworking and highly respected member of our community".
"Sadly her mother died of the same condition last year. I spoke at Edyth's funeral."
Edyth Langham-Goodwin, a Tasmanian Liberal Party stalwart and socialite, was 78 when she died in July.
"[Vanessa] has got an extraordinary network of friends and we will stand beside her ... we will support Vanessa the whole way," Mr Hodgman said.
"We'll have to stand together and get through this together.
"Needless to say very shocking and distressing news for all of us that know her, my thoughts are with the staff and colleagues … they love her to bits."
Mr Hodgman said Labor Opposition Leader Rebecca White and Greens Leader Cassy O'Connor had conveyed their best wishes to Ms Goodwin.
"I've known Vanessa all my life, we were born two days apart, our parents were best friends so I consider her one of my close friends and one of my most trusted and reliable workmates," Mr Hodgman said.
"She is held in very high regard by people in the community, she's hardworking, warm-hearted and intelligent and she's very committed to her job, so we'll miss having her around.
"I spoke at Edyth's funeral and it was very tough for Vanessa to go through, so our thoughts are now with her.
Ms Goodwin was elected as the Liberal Member for Pembroke in August 2009.
In 2014 she was appointed the Attorney-General, Minister for Justice, Minister for Corrections, Minister for Arts and Leader of the Government in the Legislative Council following the state election in March.
The accomplished 47-year-old criminologist and lawyer received a PhD in Law at the University of Tasmania and prior to her election spent 11 years working with the Department of Police and Emergency Management.
Ms Goodwin has described herself as a fitness enthusiast, who "enjoys cycling and running" and has completed the gruelling 61-kilometre Kokoda Track hike.
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