The 29-year-old former Croatian youth international is emerging as the man most likely to replace Argentinian Nicolas Colazo as Melbourne City's marquee and a deal could be finalised as early as this week.

It's understood the club's priority during the off-season was to sign an attacking midfielder to provide more service to the likes of Bruno Fornaroli while replacing the departure of former playmaker, Anthony Caceres.

Sources suggest the club was not in the market to sign a high-profile marquee despite the riches on offer from City Football Group - its parent company and was looking for a player at the peak of his career whilst being affordable.

Palic is on the cusp of becoming that signing as a free agent after parting ways with Romanian giant Dinamo Bucharest in July. He spent the past two seasons with the club, making 41 appearances, scoring three times whilst providing 14 assists. Palic is somewhat of a journeyman having played previously in Slovenia with Krka, Thailand during a brief spell with Bangkok United, Cyprus at AEK Larnaca and his home country.

Palic had a short stint at Croatian powerhouse Dinamo Zagreb but spent the bulk of his career at smaller clubs such as Inter Zapresic, Sesvete and NK Zagreb. He made eight appearance for Croatia's youth teams but is yet to break into their senior squad.

Primarily a no.10 who plays centrally, Palic has also played as a deep lying playmaker as well as a left winger but it's likely he will play his natural position should he sign for City.