The 27-year-old has been given the all-clear by doctors over a knee complaint that has hampered him over the last 12 months.

The former UEFA Champions League player is back in full training with a couple of trainers in Melbourne and is said to favour remaining in Australia to relaunch his A-League career.

"Lujbo's plan is to get back to his best which won't take too long and start performing to his capabilities," a source close to the player told au.fourfourtwo.com.

It is known that the former FC Thun and Basle star enjoyed his stint with Perth Glory back in 2000 - where he played in the club's grand final side of that year - and may be open to offers from the struggling WA franchise.

Milicevic has kept a low profile since leaving Melbourne Victory, preferring to stay out of the media spotlight and focus on his recovery.

The former Olyroo captain was touted as a major signing by Melbourne Victory at the start of season three but a knee injury in the first few minutes of the player's A-League debut against Phoenix scuppered his season.

He was released one year into his two-year deal shortly before the club's Asian Champions League campaign kicked off.

He was linked with a move to Newcastle Jets in the off-season.

"He's back to 100% now and working with a couple of trainers," added the source. "Obviously it was disappointing [his stint at Melbourne Victory].

"He hasn't been able to show his wares here in Australia. Unfortunately it didn't happen at Victory.

"We'll see what happens now."

The tall defender has been capped for Australia four times, his last in 2006 against Kuwait.