The 21-year-old attacker has inked a multi-year deal, making him Heart’s second off-season arrival after the club signed fellow Melbournian Curtis Good earlier this month.

Coach John van ‘t Schip said the arrival of the skilful Dugandzic provides a massive boost to Heart’s forward stocks for next season.

“Mate is a very young, talented player and he has some qualities that we think we can use for our team,” he said. “He can play easily around the striker, from the wings and he can also play as an attacking midfielder.

“He has depth in his game, but of course we know he is still young, and we hope to give him the playing time and experience he needs to develop into a great player.”

Football Operations chief John Didulica says Dugandzic’s signing reinforces the platform built by the club in its inaugural season.

“Mate has a lot of the qualities we are looking to build our club on," he said.

"He’s a local, he’s a player who we think is on the verge of breaking through as an elite professional and he is an authentic ball player, who enjoys being in possession and using the width of the park.

“We are pleased Mate has made what is a courageous decision to join Melbourne Heart FC”.

After making his senior debut for Melbourne Knights at the tender age of 16, Dugandzic headed to Europe to spend a one-year stint with Dinamo Zagreb.

Upon returning to Australia, Dugandzic impressed in the Victorian Premier League before making his Hyundai A-League debut in 2009, scoring seven goals in 37 appearances with Melbourne Victory.