If you could do the removal over a few years it should be better for the tree.
do you have the luxury of time? Remove as much leaf volume as possible to 'just' keep it alive.This should trigger the tree to quickly wall off the sprout.
Even if you removed the whole thing now I doubt that you would kill the parent stem. You might set things up for a larger decay spot though.
If you cut it now make a cut inches out from what you decide is a 'collar' cut. The tree will let you know where the proper cut is within a season or two. The cut may be suited for a recip saw more than a chainsaw.