PHILLIP Walsh has been honoured by the AFL Coaches Association with the creation of a scholarship in his name that will be awarded to a young coach in the AFL industry each year.

Walsh's life was cut tragically short on July 3 this year and the AFLCA was determined to honour his contribution to the game as a player, long-time assistant coach and Adelaide coach this year. 

It was announced on Tuesday night that each year a young coach would be awarded $10,000 to travel overseas and study, with applications for the first scholarship to open this summer.

"It's in recognition of Phillip's lifelong learning track record, chiefly to travel around the world and see how other coaches do their business and formal study," AFLCA CEO Mark Brayshaw told AFL.com.au. 

"We've spoken to Phil's wife Meredith and cleared it with the family. At our Annual General Meeting next year and forever more we will announce a winner."

Walsh, who played 122 games between 1983 and 1990, spent the majority of his coaching career in the shadows as a highly respected assistant.

He had stints with Port Adelaide, where he was named the AFLCA's assistant coach of the year in 2004 and West Coast, where he was influential in the formation of the club's forward press. 

Walsh decided he wanted to be a senior coach after a being hit by a bus in a life-changing event while travelling in Peru.