Melbourne Victory will have a new coach next season after club officials on Monday told Arthur Diles that his services would no longer be required.

Diles, who has been charge of Victory since being elevated from an assistant coaching role in December 2024 following the departure of Patrick Kisnorbo, guided the club to last season’s grand final.

However, it’s understood that an early exit this season’s finals series after a fourth-placed finish on the ladder has cost the off-contract Diles his job.

An early favourite to replace 44-year-old Diles is former Macarthur FC coach Ante Milicic, whose tenure as coach of China’s national women’s team ended in March.

It’s understood that Victory’s director of football John Didulica has been in discussions with Milicic.

Diles, whose budget was understood to be cut by 30 per cent this season, was shocked by the news of his demise.

Having been involved in player retention and recruitment discussions on Monday, Diles was later informed by Victory chairman John Dovaston that he was not going to be offered a new deal.

In 50 A-League games in charge of Victory, Diles won 20, lost 17 and drew 13.

He pushed hard to bring Spanish star Juan Mata to the club ahead of the 2025-26 season, with the former Manchester United and Chelsea star repaying the faith shown in him by having a superb campaign.

Melbourne Victory declined to comment on Diles’ departure when approched by NewsWire.

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