The activities co-ordinator told the Daily Mail she felt discriminated against because of her gender transition, which began over a decade ago.
"Ms Galaxy said in an email that I'm not eligible to take part in the competition because I am transgender.
"But a transgender woman is a woman, and this rejection kind of makes me feel like I'm less of one."
On her website, Yendall states: "I am a transgender woman looking to get agency signed. I believe that transgender women are under-represented in the media and this needs to change."
Born as Craig, Yendall began living as a woman at the age of 17. She began hormone treatment at 25 and underwent a full gender reassignment when she was 27.
Of her former gender, she says she "never felt comfortable" in her own body.
"My mum said I was special, but once I got the operation my life changed overnight.
"I was determined to became a female model."
The director of the Ms Galaxy competition, Holly Pirrie, explained that the website was not considered an official application, and missing Yendall's details was deemed "an oversight".
"Jossy had put her web page on Star Now - an online website that we use to promote the competition - that she was transgender and that is an oversight from us.
"But when she actually entered, we didn't receive that information. I would never want anyone to feel dejected, but unfortunately the rules are put in place for whatever reason."
The competition's terms and conditions state: "Entrant must be a naturally born genetic female."
But Yendall is not willing to accept these terms and wants to take a stand against what she sees as discrimination.
She noted the developments for transgender people internationally: "This year, Caitlyn Jenner became woman of the year for a magazine and transgender people are evolving in the media.
"I want to speak up and tell people what's happened because I think it will make me more determined to create change.
"In this day and age, transgender women are still being told no and I want that to change."
- nzherald.co.nz
