Margaret Court was named an Officer of the Order of Australia (AO) in 2007 for her tennis achievements. But it has since been revealed that Court will be made a Companion in the General Division of the Order of Australia (AC) - the highest honour - in this year's Australia Day Honours.

The names of each year's recipients are sent to media organisations under embargo, but the news that Court would be named next week was leaked on social media on Friday.

While it is to recognise her "eminent service to tennis" as a winner of 24 grand slam singles titles and being a mentor to young athletes, her sporting achievements have been overshadowed by her strong religious views in recent years.

Her comments about homosexuality, conversion therapy, same-sex marriage and transgender people have upset many and led to calls, including from other tennis greats, for Melbourne's Margaret Court Arena to be renamed.

Ballarat resident and member of the LGBTQIA+ community, Jay Morrison, said he had a sinking feeling in his stomach when he heard the news and was "very upset and disappointed".

"Giving the highest Australian honour and a platform to a celebrity that peddles bigotry and aims hatred to their fellow Australians is hurtful. The way that she uses her platform to attack people dredges up a lot of hurt and pain for the community."

He said it had a huge impact on the community as it led to media attention and would allow Court to trumpet her divisive and "hateful views".

"It's very distressing [every time] her name comes up in the media because we know that we're going to be the target of a massive beat-up for weeks. It feels like Groundhog Day. The decision means that we are open slather for all of this bigotry and hatred to come out again."

Currently engaged with plans to marry this year, Mr Morrison said it was upsetting that the types of views that Court peddled, which seek to invalidate his relationship, would come into the spotlight again when it should be a time of celebrating their love for each other.

He feels very strongly that Scott Morrison's government should call for reconsideration about the decision, and if it doesn't then he feels it is only endorsing her views.

"The reality is, society is moving forwards and those people who are still peddling this hate and bigotry are on the wrong side of history. Even if we are not going backwards it's not pleasant to have to fight this battle again and again."

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Another member of Ballarat's LGBTQIA+ community, Angela Elson, also voiced disappointment at the decision.

Ms Elson said the news was "another blow to the integrity" of the honours system.

"I am okay with her being recognised for her past sporting achievements but to get an upgrade now is a stretch in my view."

Ms Elson said the decision should be regarded in light of inclusion and diversity in sport, with there being leaps forward in some sports, such as cricket. However, transgender football player Hannah Mouncey recently announced legal action against the AFL - accusing them of exclusion and discrimination.

"Inclusion benefits everybody. We really need to feel welcome [in sports] and I really think that holding someone up like Margaret Court serves as an ongoing barrier to participation.

"It gives credence to really transphobic and homophobic views and it's disappointing because I fully believe that we are all at our best when we can follow our passions."

Ms Elson said that to honour someone for their achievements so many decades ago, when they were more recently known for divisive views, was causing damage to the image of tennis and sport more broadly.

"It sends a really poor message and is really tone deaf. The dissonance in the nomination and the honour is really strong for me - it doesn't speak to modern views and who we want to be as Australians."

Both Victorian Premier Daniel Andrews and Labor leader Anthony Albanese also spoke out against the decision.

Speaking to reporters on Friday, Premier Andrews said that he was "sick" of talking about Court every summer and that he did not support her receiving the honour.

"I don't believe that she has views that accord with the vast majority of people across our nation that see people, particularly from the [LGBTQIA+] community, as equal and deserving of dignity, respect and safety," he said.

Mr Albanese took to Twitter to voice his views:

"Margaret Court has already been honoured for her tennis prowess. She's already an Officer of the Order of Australia. I think it's clear for everyone to see that making her a Companion of the Order of Australia has nothing to do with tennis."

Prime Minister Scott Morrison said compiling the list of honours was an independent process and a system that recognised "the full spectrum of individuals across this country."

- With Ellen Ebsary