Ante Milicic is set to turn down an opportunity to become a head coach in the A-League in favour of sticking with the Matildas through to the 2020 Olympic Games in Tokyo.

The Herald understands the in-demand coach is poised to reject a multi-year contract offer from A-League newcomers Macarthur South West United and is close to accepting a contract extension from Football Federation Australia.

Staying put: Ante Milicic set to remain with the Matildas for another year. Credit:AAP

Milicic has been strongly linked with the expansion club since last December after they were handed an A-League licence and as recently as this week was reported to become their inaugural coach. However, the chances of that happening have widened significantly after the coach signalled his intention to remain in charge of the Matildas.

Appointed as the head coach of the Matildas in February after the sudden sacking of his predecessor, Alen Stajcic, Milicic only has an interim contract with FFA to guide the team through the 2019 Women's World Cup in France, which ends in July. He has only overseen four friendly games in charge but FFA have already moved quick to keep Milicic at the helm for the long term.