An Australian soldier who ran into enemy fire during the Vietnam War to reach a wounded comrade and retrieve the body of another has been awarded a Victoria Cross for bravery.

Private Richard Leslie Norden posthumously received the award for "most conspicuous acts of gallantry" during the war.

Following a Remembrance Day service at the Australian War Memorial, Governor-General Sam Mostyn and Prime Minister Anthony Albanese announced the nation's highest military honour for Private Norden, who died after the war.

During the 1968 Battle of Fire Support Base Coral, the young soldier showed extraordinary bravery by running towards North Vietnamese enemy fire to retrieve his section commander who had been shot.

After managing to drag his commander successfully back to safety, the already wounded Private Norden again placed himself in grave danger trying to save another member of his platoon who had been shot.

"On discovering his comrade had been killed, he fought on, clearing the area so his body could be safely recovered," the prime minister said.

"Such was his courage, that the enemy soldiers abandoned their positions and, as a result, many more Australian lives were saved.

"These deeds are more than worthy of the highest military honour our nation can bestow, the Victoria Cross for Australia."

Coalition MP Michael McCormack, who was representing Opposition Leader Peter Dutton, said Australia owed Private Norden a "great debt of gratitude".

Governor-General Sam Mostyn confirmed the king had approved the awarding of the Victoria Cross for Australia to the late soldier from Gundagai, in rural New South Wales.

The Remembrance Day announcement came more than two years after the Defence Honours and Awards Appeals Tribunal recommended Private Norden receive the award for his bravery.

The 1st Battalion Royal Australian Regiment (RAR) rifleman returned from the war to serve as an Australian Capital Territory police officer, but died on duty in a 1972 motorcycle accident.

Former governor-general and defence chief Sir Peter Cosgrove, a longtime advocate for awarding Private Norden, said he was delighted at the news.

"Dick Norden was a very brave soldier … he had been involved in an action that was just breathtaking in Vietnam," Sir Peter told the ABC.

"All these years later to hear that it's now been identified that is fitting, that is a great thing for all of those veterans who would've known Dick Norden."

Sidney James 'Jim' McDonnell fought on the battlefield at Coral and grew up with Richard Norden and his older brother Roger.

"He was just a down-to-earth ordinary fella" he said, of Private Norden.

"None of us were heroes, but when it come to your turn to get in and have a go, he was in the position where he went forward and did what he had to do."

Australia's four other Victoria Cross recipients were members of the Army Training Team, while Private Norden is the first veteran of the 1st Australian Task Force to receive the honour.

With additional reporting by Jess Scully