The Victorian Government has announced it will amend the Racing Act to create an independent board for Racing Victoria.

Minister for Racing Martin Pakula said in a statement on Tuesday he intended to introduce legislation next year to change the way board members are selected.

It will ensure the RV board is independent and diverse while minimising any conflict of interest.

The government is not proposing to create a racing commission or statutory authority and the selection model will not alter the nature of RV.

RV is searching for a new chief executive officer with Bernard Saundry stepping down at the end of the month while Mike Hirst is its acting chairman after David Moodie's resignation at a board meeting last week.

The government will work with the current board while legislation is developed and the new structure brought in.

"Racing is an industry which employs tens of thousands of Victorians and is worth hundreds of millions of dollars," Pakula said.

"It's vital that an industry of such importance has a modern and independent governance structure to match.

"It is no longer appropriate for the Board of Racing Victoria to be chosen by the people and organisations that it regulates.

"With the positions of permanent Chairman and new CEO to be filled in the near future, this announcement provides prospective candidates with clarity and certainty around the future governance arrangements for Racing Victoria,"