Milligan, 31, makes his return to the club after penning a one-year marquee deal with Kevin Muscat and Co. last week. 

The Socceroos midfielder hasn't played for the club since the 2015 A-League Grand Final against Sydney FC, with Victory winning 3-0. 

Milligan went on to play with Baniyas SC in the UAE, but the side were relegated down to the second-tier at the end of the 2016/17 season.

"This really couldn't have worked out any better for me," Milligan said.

"Playing in the Middle East was a great experience and one I'll look back on very fondly. It certainly became home for my wife and family.

"When the opportunity to come back to Australia presented, Melbourne Victory was the only choice."

Muscat added: "To say we're delighted is an understatement.

"Mark is a player who loves our club and to be able to secure him for next season is a massive shot in the arm.

"He's still a pivotal member of the Socceroos set-up and will be an invaluable addition to our squad as we prepare for a busy campaign that also includes AFC Champions League commitments.

"I'm sure our fans will be thrilled with this news as the build up to next season continues."

Milligan's signing brings Victory's roster up to 15 players, leaving them with eight spots to fill ahead of the new season, including three visa spots.