Reports suggest that the Victory will extend a proposal to the 28-year old Australian international which will make him the club' Australian marquee player.
Key midfielder Milligan, who arrived in Melbourne from JEF United Chiba in 2012, was a target for Premier League club Crystal Palace last year but the Victory managed to keep him on board.
They are now hoping to tie him down to a new and improved deal under the domestic marquee rules which will give them greater room to move within the salary cap.
Archie Thompson previously held the Victory's Australian marquee status but the veteran striker's new deal will see him fall under the normal cap.
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