The effects of internal quark structure of baryons on the composition and structure of neutron star matter with hyperons are investigated in the quark- meson coupling (QMC) model. The QMC model is based on mean-field description of nonoverlapping spherical bags bound by self-consistent exchange of scalar and vector mesons. The predictions of this model are compared with quantum hadrodynamic (QHD) model calibrated to reproduce identical nuclear matter saturation properties. By employing a density dependent bag constant through direct coupling to the scalar field, the QMC model is found to exhibit identical properties as QHD near saturation density. Furthermore, this modified QMC model provides well-behaved and continuous solutions at high densities relevant to the core of neutron stars. Two additional strange mesons are introduced which couple only to the strange quark in the QMC model and to the hyperons in the QHD model. The constitution and structure of stars with hyperons in the QMC and QHD models reveal interesting di erences. This suggests the importance of quark structure e ects in the baryons at high densities. PACS number(s): 26.60.+c, 21.65.+f, 12.39.Ba, 24.85.+