"Ljubo is expected back at training," Victory chief executive Geoff Miles said last night. "We had been working through the situation with the PFA and we've got that done. From that point of view, the issue is settled."

But he added: "He is contracted to play with the club. As with Archie, the club had to deal with some disciplinary issues with Ljubo. That's probably all I want to say."

Victory face Newcastle Jets this weekend but it appears unlikely Ljubo will be selected in the team with a cloud still hanging over his place in the team.

He was allowed back to training after the Professional Footballers Association threatened to take the case to tribunal if it wasn't resolved quickly.

Before Victory's climbdown, PFA Executive Chairman Brendan Schwab yesterday said he was confident the stand-off would be resolved sooner rather than later.

Milicevic was serving an indefinite suspension after missing a mandatory team breakfast along with teammate Archie Thompson in Adelaide over a week ago.

While Thompson had been forgiven despite slamming Melbourne’s handling of the situation in the media, Milicevic, one of the club’s prized off-season recruits remained exiled.

The ensuing 10-day stand-off between player and club stirred speculation that Milicevic would part ways with Melbourne in the immediate future.

“We would like to have had it resolved last week, but I’d be confident it would be resolved in the next day or so,” he told au.fourfourtwo.com yesterday.

While Milicevic was rumoured to be unsettled at the club following clashes with players and coaching staff, Schwab said the defender wanted to remain with Melbourne.

“He has the upmost respect for the club, the club’s been magnificent in the A-League and we’d be disappointed if the two can’t resolve their differences,” he said.

However, Schwab said if the club had continued its hardline approach and refused to remove the suspension against Milicevic, the players’ union would have been forced to escalate the situation and refer it to an FFA tribunal.

“Ljubo intends to move forward with the club, but if the club [had persisted] in imposing the suspension, then we would simply [have referred] the matter to arbitration and get the suspension lifted,” he said.

Schwab remained critical of Victory’s role and the way the issue unfolded in the media, suggesting changes need to be made to the A-League’s collective bargaining agreement.

He said: “What disappoints us is that the club unilaterally imposed the suspension on both players and informed the media of the suspension before the players were given the opportunity to respond and address the concerns in the appropriate manner.

“In our agreement for the Socceroos, there is a clause that no public comment can be made by FFA about any disciplinary action against a player until the processes have been exhausted, and it seems clear now that this will need to be introduced into the A-League.”