Melbourne Victory captain Kevin Muscat has signed a contract with the A-League champions that will see him play one more season for the club then join its coaching staff.

The 35-year-old, who had stints at Scottish giants Rangers and England's Millwall, said the deal offered him a long-term future in football.

"I want to be somewhere where I can learn and do my (coaching) apprenticeship, and this is the football club that I want to be at," he said.

Victory coach Ernie Merrick said Muscat may even extend his playing career beyond next season.

"He's contracted as a player for at least another year, but I'm hoping he might go on for another year after that," he said.

"He will be a very good coach down the track and is a huge asset to Melbourne Victory moving forward."