City were on the cusp of bringing Palic – who has played for Dinamo Zagreb, Bangkok United and Dinamo București –to the A-League but were not prepared to lift their already substantial marquee offer, a two-year contract worth around $500,000 over two seasons.

Instead, The World Game understands that Palic has agreed a more financially rewarding deal with Belgium club Mouscron, a club that made headlines recently as it was linked to being a potential “satellite club” for Paris Saint-Germain.

Mauk returns to Melbourne City on loan deal

Palic’s name surfaced earlier this week in media reports when it was suggested that he could become City’s latest marquee signing. However, while the club made a generous offer, the Croatian player’s representatives asked for an enhanced base wage.

The news will come as a disappointment to City fans who were looking forward to the prospect of the polished midfielder adding a touch of class to their midfield.

City are very much in the market for an attacking midfielder having lost Anthony Caceres, who has been loaned to UAE side Al-Wasl, while Fernando Brandan is only half way through his recovery from a torn anterior cruciate ligament sustained at the back end of last season.

The club was heavily linked with a move for Melbourne Victory marque James Troisi and was supposedly close to pulling off a shock move, only for the Socceroo to accept an offer to re-join Victory.

They are also looking to add a defender to their ranks, with Bart Schenkeveld of Dutch club PEC Zwolle - where ex-City coach John van't Schip is in charge - reportedly ready to join City in the coming weeks.