MELBOURNE, Oct 22 (Reuters) - Football Federation Australia were in talks on Tuesday with A-League team Melbourne Victory about releasing Ange Postecoglou to become the national coach, local media reported.

Postecoglou was last week named one of three candidates by FFA boss Frank Lowy to replace the sacked Holger Osieck, along with former Socceroos coach Graham Arnold and Western Sydney Wanderers manager Tony Popovic.

Melbourne Victory will seek hefty compensation for the loss of Postecoglou, the fledgling competition's most successful active coach with two championships.

"We might be making some comment later today," Melbourne Victory chief executive Ian Robson told local broadcaster Fox Sports on Tuesday.

"There are conversations going on and, for the moment, we want to keep those conversations directly with the FFA."