Darby McCarthy, one of Australia's great jockeys, hopes a scholarship in his name will open doors for indigenous youth.

McCarthy, 71, says the racing industry's gesture - nearly 40 years after his career and life was irreparably damaged by a race-fixing investigation - was "humongous".

One of only three jockeys to win the AJC Derby and the Epsom Handicap on the same day, he was handed a controversial long-term suspension by stewards in 1976 for which he was formally pardoned in 2007.

"It was a terrible time in my life - my life was in jeopardy," he said at the launch of the scholarship in Melbourne on Tuesday.

"I had no trust from owners or trainers ... but to see this, I'm very proud."

McCarthy, who mentored a teenage Cathy Freeman, will help guide the scholarship's first recipient, who also receives support from the Koorie Academy of Excellence and work placement.

Racing Victoria will provide one student from the academy the opportunity to be part of the industry work placement, mentoring support and $5000 towards education development.

"The scholarship opens up a door and enables our people to have an entry into the industry, whether it be as jockeys, trainers, strappers or working behind the scenes," he told AAP.

The announcement on Tuesday coincided with the unveiling of a tribute to McCarthy and other indigenous racing participants at the National Sports Museum at the MCG.

Key to the showcase is McCarthy's AJC Derby gold whip, which was stolen more than 25 years ago before being "rescued" by a sports memorabilia expert.

Victorian racing minister Martin Pukula said McCarthy's rags-to-riches story would provide inspiration for the scholarship recipients.

McCarthy first took to the track at a Queensland picnic meeting as a poor 10-year-old, donning borrowed boots and improvised colours.

The young horseman proved a trailblazer for indigenous jockeys by saluting the judges in three Stradbroke Handicaps and a Doomben 10,000.

He rode 1000 winners during a career across five continents.