Milligan was last night said to be in a Lisbon hotel in the Portuguese capital and would travel to Porto later today to hold talks with the side.

The 23 year old Olyroos skipper has been struggling to find a new club for next season since leaving Sydney FC at the end of last season.

He trialled in England recently after meeting with Manchester City and Arsenal - earning the ire of Australian coaching staff for missing a national team training session in the process.

But his dream of a move to the English Premier League has been stymied by work permit problems.

Now he looks set to ink a deal with Porto where it is easier for non-Europeans to work while he adds to his Socceroo appearances to earn a UK visa.

The Portuguese side is one of Europe's finest, having won the Champions League in 2003/4 and the UEFA Cup in 2002/3.

Recent former players include Jose Bosingwa who was sold to Chelsea for 20 million euros, and Ricardo Quaresmo who was linked with a 27 million euros move to Inter.

The Portuguese sports press said overnight that Milligan wanted to play in the UK but had been held back by his visa problems and that FC Porto were looking at him for the medium term.

They added: "It paves the way for other suitors, including FC Porto, as Milligan does not want to go back to the land of kangaroos."