Norman stood in solidarity with American athletes Tommie Smith and John Carlos during their silent civil rights protest against racial discrimination on the 200 metres podium.

While Norman wore a badge supporting human rights, Smith and Carlos bowed their heads and raised a fist clothed in a black leather glove.

Norman, who died in 2006 at the age of 64, was punished for his role at the time and did not compete at another Olympic Games.

Six years after his death, the Australian Parliament apologised to him for the "failure to fully recognise his inspirational role before his untimely death".

In winning the 200m silver medal at Mexico City 1968, Norman set an Australian record time of 20.06sec which still stands to this day.

An Order of Merit is awarded to a person who in the opinion of the AOC Executive has achieved remarkable merit in the sporting world, either through personal achievement or contribution to the development of sport.

In awarding the posthumous Order of Merit, AOC President John Coates stated that Norman’s remarkable achievements as an athlete were inevitably dwarfed by his support for Smith and Carlos during the United States national anthem.  

"This is an overdue award there is no doubt," he said.

"The respect for Peter and his actions is still enormous to this day.

"He believed in human rights throughout his life.

"We lost Peter in 2006 but we should never lose sight of his brave stand that day and further as a five-time national champion, his Australian 200 metres record set in Mexico has never been matched.

"His athletic achievement should never be underestimated."

Coates also awarded Orders of Merit to four legendary Olympic medallists.

Cathy Freeman, Raelene Boyle, Ian Thorpe and Shane Gould all received the honour. 

Boyle is a three-time Olympic silver medallist, having ended as the runner-up in the women's 200m at both Mexico 1968 and Munich 1972.

She was also second in the women's 100m in Munich and claimed seven Commonwealth Games gold medals during her career.

Gould was a triple gold medallist at Munich 1972, the swimmer triumphing in the women's 200m and 400m freestyle events, as well as the 200m individual medley. 

She claimed 800m freestyle silver and 100m freestyle bronze at the same Games.

Freeman claimed a historic women's 400m gold medal at the Sydney 2000, four years after winning silver in Atlanta.

It is regarded as one of Australia's most significant sporting achievements and an iconic Olympic moment.

The indigenous Australian also lit the Olympic flame at the Opening Ceremony of the Games.

Thorpe is one of Australia's greatest swimmers, having claimed three gold medals and two silvers at Sydney 2000.

He returned four years later to earn two golds, one silver and one bronze at Athens 2004, while Thorpe ended his career with 11 world titles.

"Raelene Boyle, Catherine Freeman, Shane Gould and Ian Thorpe - what wonderful ambassadors for Australia and Australian sport," Coates said.

"Each has made a contribution for which they can be proud and for which Australians are very grateful."

Long-standing members of the Australian Olympic Foundation's Investment Advisory Committee, Paul Bachelor and Angus Douglas, were also awarded an Order of Merit, along with Geoff Lipshut, chief executive of the Olympic Winter Institute of Australia.