Ned Kelly will finally get his last wish, burial on consecrated ground, 131 years after his execution.

The grandchild of Kelly's sister said the descendants of the infamous bushranger plans a "dignified private burial" and probably a separate public memorial service for him after Victorian Attorney-General Robert Clark announced Tuesday that his remains will be returned so his wish could be granted.

"Our family, like every family, likes to be able to bury their own family members. Our aim is to give him a dignified funeral, like any family would," said Anthony Griffiths, according to AAP.

The descendants plan to bury Kelly's remains in a small cemetery in the Greta churchyard south of Glenrowan town. Kelly's mother Ellen, several of his brothers and sisters and other relatives are buried in unmarked graves in the said cemetery.

Griffiths added that a public ceremony is being considered by the family because of the level of public interest on Kelly.
The great-grand nephew of Kelly said the return and burial of his remains will also correct a wrong done to the family.

Edward "Ned" Kelly was a notorious outlaw and a folk hero at the same time. He became an iconic figure in Australian history, folklore, literature, art and film after he was hanged at Old Melbourne Gaol in November 1880 for killing three Victorian police officers in 1878. After Kelly's execution, his head was cut and his body was dissected before being buried.

His skeletons ended up in a mass grave Pentridge Prison, which was shut down in May 1997. The Victorian Institute of Forensic Medicine identified Kelly's remains from 24 exhumed skeletons at the Coburg prison in September after 20 months of investigation that included DNA analysis.

A studio photograph of a reenactment of Ned Kelly's arrest.