Harry Kewell may still return to Australia after both Sydney FC and Melbourne Victory confirmed they are in talks with his agent to secure him.

Kewell's manager Bernie Mandic had said earlier this week that a move to either Sydney FC or Melbourne Victory was a no-go after talks with FFA broke down over a top-up component to his club contract.

But Sydney FC  say they have put forward a number of proposals to Kewell, while Melbourne Victory's managing director said he was confident the Socceroos' star would sign with them.