The 37-year-old has hung up his boots after a long career in the NSL, Switzerland, A-League and Croatia.
Milicevic announced his decision via Instagram.
The outspoken centre back played for 12 different clubs after coming through the AIS and starting with Melbourne Knights in 1998.
He represented Australia at Under-20 and Under-23 level, gaining eight caps for the Socceroos.
Milicevic joined the Blues in the NNSW NPL last year after a spell with Dandenong City in Victoria.