Nikolic was suspended for two years for abusing Terry Bailey at a 2012 Seymour race meeting, during which he called him a "f---ing c---" and told him to keep his "eyes on the road". Racing Victoria has refused him a jockey's licence since.

The Caulfield Cup-winning rider is appealing against that refusal at the Victorian Civil & Administrative Tribunal, and insists he is a changed man having undergone counselling during his ban. His past indiscretions also include criminal convictions for assault.

Mr Bailey maintains Nikolic also told him at Seymour of knowing where the steward's family lives, a threat the rider denies making. Nikolic maintains Mr Bailey that day threatened to "f--- your career". Mr Bailey on Friday denied that allegation.

While acknowledging the two men have "different versions" of what was said, Mr Bailey told the tribunal his relationship with Nikolic was irreparable, and it would be "very difficult" to work with him again.

"In my opinion the position between Danny Nikolic and I is untenable," Mr Bailey said.

"It (working together) would be very, very difficult in the circumstances."

Mr Bailey provided similar responses when asked several times by Julian Burnside QC, acting for Nikolic, if the steward would try his best to work with the rider if he was granted a jockey's licence.

At one point Mr Bailey replied: "If Danny Nikolic is given a licence then he's given a licence. Maybe it will be me that will have to move on."

Nikolic this week acknowledged other heated and rude exchanges with Mr Bailey, and the chief steward said on Friday he had never had as much trouble with a jockey in his 30 years as a steward as he had with Nikolic.

He said there had been tension between the pair since allegations of improper practice were levelled against Nikolic in 2010. He was later cleared.

Mr Bailey agreed Nikolic would have been under stress between 2009 and 2011 following that inquiry, his marriage breakdown and the murder of his former father-in-law, Les Samba. He never asked Nikolic about the stress he was under.

In a statement tendered to VCAT, Mr Bailey said it was part of his role to look out for racing's public image, and that reading Nikolic's criminal history had shocked him.

Racing Victoria says Nikolic is not a fit and proper person to hold a jockey's licence. Nikolic has said he wants to base himself in Queensland to avoid Mr Bailey, who he this week accused of being "corrupt".

The 41-year-old has fronted the courts for separate assaults on a taxi driver, fellow jockey Mark Pegus, Mr Pegus' then partner and a police detective. The tribunal heard on Friday Nikolic and the detective touched foreheads lightly when the rider became angry at questions he was asked in a police interview.

Racing Victoria lawyers are trying to compel Mr Pegus to give evidence.

Mr Bailey said it was rare for jockeys to fight each other, but when pressed by Mr Burnside, agreed there had been a handful of clashes, including one between two female jockeys. "I think they had a tango in Echuca," he said.

The hearing will resume later this month.