A new national Indigenous vocational education body aimed at improving training and employment outcomes for First Nations people will be established under the Federal Government.

Named the Indigenous Centre of Vocational Excellence (ICOVE), the centre will be run by Kimberley Aboriginal Medical Services (KAMS) and the Tranby Aboriginal Co-operative in Sydney.

Starting July 1, it will receive up to $24 million in federal funding over the next four years.

Minister for Indigenous Australians, Malarndirri McCarthy, said the funding puts First Nations leadership at the heart of vocational education would help build stronger long-term employment outcomes.

KAMS chief executive Vicki O'Donnell said the partnership between KAMS and Tranby would be guided by community accountability and cultural governance.

"KAMS and Tranby are proud to be selected to host the ICOVE," Mrs O'Donnell said.

ICOVE's main goal is to help Aboriginal and Torres Strait Islander people find culturally appropriate training and clear pathways into jobs, especially in areas like health, construction, and early childhood education.

The centre will also team up with Indigenous-run training organisations, employers, and communities to make sure vocational education works well in cities, regional towns, and remote areas.

Federal Minister for Skills and Training, Andrew Giles, said the centre will help connect training and real job opportunities.

"The Indigenous Centre of Vocational Excellence will help build partnerships across the sectors of health, construction trades and early childhood education to accelerate our efforts to Close the Gap," Mr Giles said.