One of two teens charged with the alleged stabbing murder of a young Indigenous man fears retaliation in prison, a court has been told.

Kaiden Morgan, 18, died in an alleged machete attack in Morwell, about 155km east of Melbourne, on Saturday night.

The Morwell man was found with stab wounds on The Boulevard - a residential street in the Gippsland town - and taken to hospital, where he died a short time later.

Another man, a 20-year-old from Warragul, was discovered injured nearby on Gillies Crescent but survived.

Tyson Fenton, 19, and a 16-year-old boy faced Latrobe Valley Magistrates Court in Morwell on Monday after they were both charged with murder and intentionally causing serious injury.

Fenton made no application for bail as he appeared remotely from custody wearing a black sh

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