Melbourne Victory coach Kevin Muscat says captain Carl Valeri is showing "significant improvement" but still remains some time away from a return.

Valeri has been out of action since November after being diagnosed with an inflammatory condition affecting his balance and his brain.

"After further testing, Carl has shown significant improvement from last month," Muscat said.

"We will continue to work closely with his doctors to monitor his condition, but we are still yet to determine when he can return to training.

"We should be in a position to give a further update in the next 10-14 days, but at present, his return date remains indefinite."

Melbourne Victory's next match is against Sydney FC at 7.30pm on Australia Day at Etihad Stadium.