Banna Strand, the horse who went from villain to a hero of the Warrnambool jumps carnival, has died in New Zealand.

The steeplechaser's death from a colic attack comes after a memorable win in the signature race of the Warrnambool racing carnival, the Grand Annual Steeplechase in May.

Banna Strand's Grand Annual win stands out as a highlight on an otherwise modest racing record but his exploits as a jumper had made him a famous racehorse well before the May 2 victory.

The nine-year-old made headlines around the world and entered Grand Annual folklore when he jumped an outside fence in the 2011 edition.

His leap into a group of spectators injured seven people and led to more calls for jumps racing to be banned.

But he returned this year to wear down his opposition over the last 100m of the 5500m test, proving to trainer John Wheeler there is some truth to the racing adage that there's a race for every horse.

"It just shows you, if you've got no ability you can still win. That's what this business does, it gives horses like him a chance to do something," Wheeler said after the Grand Annual win.

Banna Strand's Grand Annual-winning jockey Gavin Bedggood said he would never forget the horse's 2013 victory.

"RIP Banna Strand. Forever grateful for the spin you gave me in the Annual this year. You will be forever remembered," he said on Twitter.