Bozanic has signed a three-year deal and will fill the Australian marquee position vacated by Mark Milligan, who joined United Arab Emirates club Baniyas after the grand final.
Victory is believed to have tried to lure attacking midfielder James Troisi back to the club and inquired about midfielder Luke Brattan, whose preference is to go to Europe after he quit Brisbane Roar.
Coach Kevin Muscat settled on Bozanic, a versatile left-footed midfielder who can play a variety of midfield roles.
He was a regular for the past two years with Swiss club Luzern, playing 26 games last season after playing 31 games a season earlier.
“Oliver brings a wealth of experience and quality to the club, having played in England, Switzerland and in the A-League, as well representing Australia at the most recent World Cup in Brazil, so we are looking forward to what he can add to our playing group,” Victory coach Kevin Muscat said.
Bozanic, 26, passed a medical last week and will start training with his new team-mates on Friday.
“Melbourne Victory is a club that is immensely respected on and off the pitch so when the opportunity came to join the club, I accepted it without hesitation,” Bozanic said.
“I’d like to thank Kevin and the Melbourne Victory Football Club for the opportunity and I look forward to repaying their faith in me in front of the incredible Victory fans.”
Sydney-born Bozanic returns to the A-League where he won the Premier's Plate in 2012 and the Championship in 2013 with Central Coast Mariners.
He played for the Socceroos at the 2014 FIFA World Cup but did not make the cut for January's AFC Asian Cup-winning squad.
