Football Federation Australia has reached an agreement with the Melbourne Victory to release coach Ange Postecoglou.

The decision means Postecoglou, contracted at the Victory until 2015, can take the reins of the Socceroos.

The agreement, however, does not bring to an end the stand-off between the two groups with a decision on compensation for the A-League club still to be decided.

Early on Tuesday morning, Postecoglou was keeping tight-lipped on whether he would be coaching the Victory in Friday’s clash with the Brisbane Roar.

“We will see what happens,” he said.

The Socceroos position become available after Holger Osieck was sacked earlier this month following consecutive 6-0 losses to Brazil and France.

It quickly became a three-horse race for the job after FFA chairman Frank Lowy said he wanted an Australian coaching the Socceroos.

And Postecoglou quickly firmed as the favourite over Central Coast Mariners coach Graham Arnold and Western Sydney Wanderers mentor Tony Popovic.

The latter was shocked when he heard the news.

“You’ve just told me news that I didn’t know,” he said.

“Whatever the FFA decides, if it’s an Australian coach, and if as you’re saying it is Ange, brilliant, great.

“We move on and I’m sure he’ll do a great job and we look forward to supporting the Socceroos.”