The French woman, an Indonesian maid and three Malaysian men were arrested on Wednesday in a raid on two luxury apartment units in the capital of eastern Sabah state on Borneo island, state police chief Hamza Taib said.
Police seized 36 cannabis plants and half a kilogramme (1.1 pounds) of processed cannabis from the units, Hamza said.
Malaysia is known for its strict anti-drug trafficking laws, and the offence carries a mandatory sentence of death by hanging upon conviction.
"We will finish our investigations and submit the papers to the attorney general's office. It's very likely that they will be charged," Hamza told AFP.
He added the French woman, in her 30s, had been in Malaysia for a year but declined to name her or give further details.