Stella joined Italian Serie A club, AC Siena, at the age of 17 before spending the past four months in Scotland with Rangers.

The 21-year-old sought a release from the Glasgow outfit after receiving interest from Victory and failing to secure regular first team football at Ibrox.

Coach, Ange Postecoglou, expressed delight in adding another young Victorian to his high-flying squad.

“Francesco is a young player with plenty of talent and I believe we can really develop him over the next two-and-a-half years,” Postecoglou said.

“For a club like Siena to see potential in him when he was just 17 years old is a fair indication of his quality.

“While things didn’t work out for him over in Europe this time, the prospect of first team football was enticing to him and I’m confident we’ve got ourselves a player who can perform regularly in the A-League.”

Stella, who was raised in Melbourne, said he was looking forward to the next chapter in his career.

“Having been away for a few seasons now, it’s exciting to be coming home to play for Melbourne Victory,” Stella said.

“Being overseas has been an experience that I have learnt a lot from, both good and bad, and I feel it has helped me grow both as a footballer and a person.

“It’s extremely competitive over in Europe and at 21, I want to be playing regular first team football if I’m going to continue my development as a player.

“I really like the way Ange wants to play, so hopefully I can have an impact at Melbourne Victory and help the club achieve success over the next few seasons,” he added.

Stella is expected to arrive in Melbourne next week.

Rangers’ boss Ally McCoist told the club’s website on Tuesday: "Francesco has made it clear to us that he is disappointed at the lack of first team matches, which I totally understand.

"We will not stand in his way because we feel at this stage he wouldn't benefit the first team. He is in the process of leaving the club now and he goes with our best wishes."