Milanovic started his professional career with Western United before joining Western Sydney in 2023.
“Nicolas is an exciting, up-and-coming player who we believe has a very bright future ahead of him,” Thelin said.
“He’s made a real impact in the last 18 months in Australia, particularly with his goal contribution and assists, and he’s been a consistent figure in the goal charts in the league.
“He’ll bring good physicality and as a left footed, right-sided winger, he is the profile of a player we don’t currently have in the squad. His energy and creativity will add a different dimension.”
Milanovic is “excited” to be joining “a club with a great history and a passionate fanbase” after two-and-a-half years with his boyhood club that have “changed my life”.
Western Sydney head coach Alen Stajcic said Milanovic had “demonstrated not only his incredible talents but a growth and maturity” in helping his side score a record number of goals this season.
Their side reached the A-League play-offs but missed out on the semi-finals after a 2-1 defeat by Melbourne Victory last week in the elimination finals.