The 18-year-old made two A-League appearances for Victory, both coming at the end of last season, but found himself starved of opportunities under new coach Ange Postecoglou.

The attacker, who moved to Perth from Sierra Leone as an 11-year-old and spent time on the books of both Bayern Munich and Hoffenheim as a youth, said he had enjoyed his 12-month stint in Melbourne.

"It was a great experience and I am really glad I had the opportunity with Melbourne Victory even though it did not work out as I had hoped," Davies said.

"I want to thank all my team-mates who have been great to me during my time here in Melbourne. I also wish to thank everyone at Melbourne Victory for their support and I look forward to the next challenge in my career."

Postecoglou wished Davies well in his next move.

"Julius is a talented young player who unfortunately ran into some stiff competition for places here at Melbourne Victory," Postecoglou said.

"While still only 18, he obviously wants to be playing first-team football and he's probably found himself further down the pecking order than he'd have liked.

"We wish him all the best in his future endeavours."

Brisbane Roar and Perth Glory are reportedly interested in securing Davies's services.

Victory also released Petar Franjic, 20,  who joined the club in 2010 and made 31 senior appearances for the club, including seven this season.

Postecoglou added: “Petar is a terrific clubman but, unfortunately for him, competition is strong within the squad and he decided that it would be best for his development to seek regular first team opportunities elsewhere.

“We wish Petar all the best for the future.”

Franjic, who has represented Australia at junior levels, said, “I’d like to thank the club, the players and the fans for making my time at Melbourne Victory extremely enjoyable.”

“As a young player though, I want to be playing regularly and for that reason I’ve chosen to explore other options.”