According to a Fairfax report, Muscat has told the Victory's front office he wants to end his 15-year association with the club to seek a reprieve from the pressures of day-to-day coaching.
It has been a move Muscat has been considering for the past few weeks as he looks to recharge and plan his next venture.
While he has been linked to a coaching job in the Middle East, Muscat is not believed to have any other position lined up with a break from football his main priority.
The 45-year-old has been at Victory since their inception, starting as a player before progressing through the coaching ranks to head coach after he called an end to his playing days.
The reigning A-League champions appear set for a rebuild after their humiliating 6-1 defeat at the hands of Sydney FC in last week's semi-final but Muscat's job was believed to be not under threat.
Instead, he could be set to make the most of his successful tenure at Victory, as well as his impressive coaching resume, to secure a move abroad.
Muscat has a year remaining on his existing deal with the club and is only a year removed from leading them to their fourth championship title.
Speaking at a club business lunch on Friday, Muscat discussed a potential rebuild for the Victory next season, but did not make any mention of his own plans.
Victory chairman Anthony Di Petro carried on the theme of rejuvenation, telling the audience of business leaders, politicians and football identities the club is in need of wholesale changes.
Wednesday's match will also be retiring club captain Carl Valeri's final game for Victory as well as a likely farewell for Japanese marquee Keisuke Honda.