The 33-year-old former Leeds United, Liverpool and Galatasaray playmaker scored eight goals in his first season in his home domestic league and had been expected to sign another deal.
"It was one of the toughest decisions we've had to make," Kewell said from England in a Football Federation Australia news release.
"I enjoyed playing for Victory and living in Melbourne, but family comes first and together we made a decision that it was best for us to remain close to our family at this time."
Kewell, who left Australia for England when he was 15 and is married to an English actress, was Australia's first genuine world class football talent and his signing was a huge boost for the A-League.
- Sports & Recreation
- Leeds United
- Football Federation Australia