Fairfax Media can reveal Mr Mullett has already rejected a financial offer from the Victorian Government Solicitor's Office on behalf of Victoria Police, in what appears to be an attempt avoid a Supreme Court trial next year that could further embarrass the force.

Mr Mullett, along with former assistant commissioner Noel Ashby, was charged over allegedly providing false evidence under oath to the Office of Police Integrity in 2007 and perverting the course of justice by the tipping of a suspect in a high-profile murder investigation.

The cases against both officers collapsed, but Mr Mullett never returned to his role with the police union.

In Supreme Court documents, Mr Mullett claims a "malicious prosecution" by former police commissioner Christine Nixon and several other senior police cost him almost $2 million, including $799,360 in lost salary and superannuation, and $203,169 in lost investment earnings.

Mr Mullett alleged that Ms Nixon "had determined to destabilise his standing with members of the Police Association and if possible cause him to be removed from his office as secretary of the … association and as a member of Victoria Police in order to remove and eliminate his vigorous opposition to her industrial relations plans."

The former Police Association secretary had been a vocal critic of Ms Nixon's management style and the pair had repeatedly clashed over resourcing and policy issues.

Former deputy commissioner Kieran Walshe and Superintendent Wayne Taylor are also defendants in the civil proceedings and could be required to give evidence under oath if the matter proceeds to trial in March 2016.

Next week, a Supreme Court judge will consider an application from lawyers for Mr Mullett who want to cross-examine Ms Nixon, Mr Walshe and Mr Taylor about affidavits they had previously sworn in the case.

All three defendants have denied allegations of wrongdoing and insisted they acted in good faith, according to court documents.

Sources close to Mr Mullett claim the matter is unlikely to reach court, because of the potential for further damaging information to be revealed about the bungled investigation by the now-defunct OPI.

Any financial settlement between Mr Mullett and the Victorian Government Solicitor's Office would continue Victoria's ignominious record for making massive, taxpayer-funded payouts to top police and justice officials who departed under controversial circumstances.

Former Victoria Police chief commissioner Simon Overland is believed to have walked away with more than $2 million after he resigned suddenly over the publication of misleading crime statistics before the 2011 state election.

The former director of the Office of Police Integrity, Michael Strong, who oversaw the botched investigation of Mr Mullett, is also understood to have received a substantial "ex-gratia" payment.

Former director of public prosecutions Jeremy Rapke is believed to have received almost $8 million after he resigned in 2011 following a report that found he had made an "error of judgment" by recommending the promotion of three relatively junior lawyers to highly paid roles as associate crown prosecutors.

Mr Mullett declined to comment when contacted by Fairfax Media.

A Victoria Police spokeswoman said that as the matter was before the courts it would be inappropriate to comment.

A spokeswoman for the VGS said they do not speak to the media.