Vukovic signed a three-year deal before the start of the 2015/16 season, however the club agreed to release the 31-year-old this week on personal grounds.
“This was a very difficult decision for me to make because I thoroughly enjoyed the time I had at Melbourne Victory last season,” Vukovic said.
“I am grateful for the opportunity to represent Victory and I would like to thank everyone at the club and the fans, who have given me unbelievable support.
“Last season was very difficult off the field for me and my family, and the best decision for us at this time is to be closer to our extended family in Sydney.
“I wish Kevin Muscat and the players all the best for the upcoming season.”