May Myat Noe, who recently won the Miss Asia Pacific World 2014 competition, said she would only hand back her $100,000 (£60,300) crown after she received an apology from organisers.
She claims she was forced to lie about her age and organisers had insisted that she have "head-to-toe" plastic surgery.
Last week a spokesperson for the competition accused her of being ungrateful and dishonest.
She also says the claims that she had run off with the crown are untrue and that she had boarded the plane for Myanmar without realising her title had been taken away from her
The organisers are now planning to sue Ms May, and may get the police involved to try and retrieve the tiara.