Melbourne Victory have confirmed they have agreed terms with Arabian Gulf League club Baniyas FC for the transfer of Mark Milligan.

The 29-year old midfielder is set to join Baniyas for a reported fee of $1million with the move to be officially completed on July 15 when the Arabian Gul League's transfer window opens.

Victory head coach Kevin Muscat was thankful to Australian international Milligan who captained the club to the 2014/15 A-League title.

"Mark has been a wonderful servant for Melbourne Victory who has led by example at every opportunity," Muscat said.

"He won the Victory Medal in 2012/13 and played a major role in our Premiership-Championship double last season.

"The offer from Baniyas presents a significant opportunity for Mark and his family that he would like to pursue.

"We wish Mark all the very best for the future and thank him for his service to the club."

During his three-and-a-half year stint with the Victory, Milligan made a total of 81 appearances in all competitions.