Hosted by the Keith Payne VC Veterans Benefit Group, the private ceremony will include a number of guests from the US Embassy in Canberra, personnel from HMAS Albatross and a number of local veterans, some of whom were involved in the incident.

Keith Payne VC will also make the journey from Queensland to be part of the service.

Melbourne and the Evans collided in the South China Sea around 3am on June 3, 1969, during operations.

Melbourne was one of 40 ships from six nations taking part in Exercise Sea Spirit in the South China Sea about 650 miles south-west of Manila, when the detroyer Evans was ordered to change position, crossed Melbourne's bow and was cut in two, leading to the loss of 74 American sailors.

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Onboard Melbourne at the time was an estimated 200 personnel from Nowra's HMAS Albatross, including Skyhawk aircraft from 805 Squadron, Tracker aircraft from 816 Squadron along with their associated squadron personnel support.

Wessex Helicopters, from the Albatross' 817 Squadron, were also onboard providing search and rescue capabilities.

Chairman of the Keith Payne VC Veterans Benefit Group, Rick Meehan said the incident should be commemorated.

"We have members of our group who were onboard Melbourne at the time," he said.

"And they have spoken about the incident in conversation.

"For a number of years, as a group, we have hosted a private ceremony to mark the Voyager disaster, so the question was raised 'why not the Frank E Evans?'

"Which is probably a very fair question, especially considering how much involvement Albatross personnel would have had, with a large number on Melbourne at the time.

"It is something we should commemorate - as a nation we were involved.

"A lot of sailors were killed, while not Australians, Americans, we should commemorate that."

Mr Meehan said there are still veterans locally who suffer trauma from the event.

"As an organisation, one of our roles is to do what we can to ease the pain and help veterans dealing with trauma," he said.

"Hopefully, this event will ease the pain and commemorate those who lost their lives."

The special service will be held on the banks of the Shoalhaven River.

The US Embassy in Canberra will be sending representatives to the service, which will be led by HMAS Albatross chaplain Jenny Schleusener.

Two US Marines and a US Navy Lieutenant from the embassy will attend the service, as will a number of current US personnel who are currently on exchange at Albatross, while the manager of the Nowra Veterans Wellbeing Centre, Jason Grimes, himself a former US Marine, will also be attending.

HMAS Albatross will be represented, with the Nowra base also providing a ceremonial sunset guard.

"US Embassy staff have been very supportive and are thrilled we are holding a commemoration," Mr Meehan said.

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