MELBOURNE Victory will need to steel its resolve to keep Mitch Nichols as J. League club Cerezo Osaka consider making an improved bid for the midfielder.

Victory failed to entertain a $200,000 offer for Nichols from Cerezo this week, playing hardball with the Japanese side.

Incoming Cerezo coach Ranko Popovic has Nichols on his wish list as he prepares for the Japanese season, beginning in March.

"I make no secret that we are trying to attract Mitch to the club and he's a player I admire very highly," Popovic told SBS.

"I need to finalise things with Mitch because he's a player I really want, but if we can't work out a way then I need to turn my attention elsewhere."

Cerezo is understood to be considering its next move in the wake of Victory's knock-back, but is likely to offer an increased fee for the talented Queenslander in the next fortnight.

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Nichols has been a revelation for Victory this season, playing as a roaming attacking midfielder and forward in their unique 4-2-2-2 formation.

The potential transfer has the hallmarks of Mark Milligan's mooted move to Crystal Palace, which fell through after the Premier League club failed to meet Victory's demands.

Nichols' agent Buddy Farah, who also manages Milligan, urged the club to find a win-win outcome.

"The club should be open-minded on this and look for the best deal for both parties if the player wants it and the offer is there," Farah said.

The potential transfer comes at a crucial moment for both club and player.

Under Kevin Muscat, Victory is making good progress towards an A-League championship tilt but Nichols' departure would deprive the club of its most fluent attacking force.

Nichols has an eye on making Ange Postecoglou's World Cup squad, and his prospects could potentially be enhanced - along with his weekly salary - with a J. League move.

However, if Nichols found himself on the outer in Osaka, he could also throw away his dream of playing in Brazil.

Currently in sizzling form and playing each week at Victory, Nichols would know a switch to a bit-part role could end his World Cup hopes.

He last played for the Socceroos in July's East Asian Cup with a largely A-League based squad, missing out on Postecoglou's first 22-man group called up for November's home win over Costa Rica.