JAPANESE club Cerezo Osaka has submitted a modest bid for in-form Melbourne Victory midfielder Mitch Nichols.

Keen to retain his squad for February's Asian Champions League qualifier, Victory coach Kevin Muscat's resolve will be tested with Cerezo tabling an offer for the 24-year-old Nichols, who has long harboured ambitions of playing abroad.

Cerezo's new coach is Ranko Popovic. He coached FC Tokyo in the 2012 Asian Champions League campaign against Ange Postecoglou's Brisbane Roar, which is where Nichols caught his eye.

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Nichols was close to joining a Belgian club last January ­before signing a two-year deal with Victory in the off-season.

It's understood Nichols' contract does not include a ­release clause.

The attacking midfielder has been in sensational form this season, scoring three goals and setting up four in 11 starts.

Nichols' agent Buddy Farah refused to comment when contacted by the Herald Sun, while Victory officials did not return calls on Thursday.

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Victory captain Mark Milligan said he was confident the transfer speculation would not distract Nichols.

Milligan is well placed to offer advice to Nichols given that less than six months ago he was the subject of an enticing bid from English Premier League club Crystal Palace.

Victory and Palace could not come to an agreement over a transfer fee.

News_Image_File: Melbourne Victory playmaker Mitch Nichols.

Milligan also knows Japanese football as he played for J-League division two club JEF United Chiba from 2010-12.

"Japan's a very good country to go to and play football," Milligan said.

"I think it's a great credit to Mitch that he's getting attention from these sorts of clubs because they are a good club," Milligan said.

"It is between Mitch and the club to decide what happens, but I know Mitch will be at his best this week and in the coming weeks as well."

Cerezo, which finished fourth in the 2013 J-League, is the former club of Manchester United midfielder Shinji Kagawa.