Alone in the dock, despite rows of seats in front of him packed with family, friends and former teammates, Milne, 34, admitted he indecently assaulted the woman in the early hours of March 15, 2004, in the Highett home of then teammate Leigh Montagna.

The two footballers and two women were on a bed in a darkened room, prosecutor Mark Rochford, SC, told the court, when Milne indecently assaulted the victim after she had earlier said no to sex.

The victim, then 19, thought she was with Montagna at the time and only afterwards realised that it was Milne she had engaged in sexual activity with, the court was told.

Milne was to face trial for three rape charges later this month. But Mr Rochford said the indecent assault charge replaced the previous charges, although he did not say why the rape counts were discontinued.

The victim was in court and a victim impact statement was tendered, but not read aloud.

Most of the plea hearing was then devoted to defence counsel Philip Dunn, QC, who argued for a fine and no conviction, based on Milne's good character, the public backlash he and his family had suffered for 10 years, evidence given from the witness stand by Milne's wife and agent, and references from former Saints coach Ross Lyon, former St Kilda chief executive Michael Nettlefold and current captain Nick Riewoldt.

Mr Dunn said the case had been muddied because of Milne's status as an AFL player and that everyone involved had paid a "ferocious price" and that "it's time to move on".

"This case has been clouded in a fog of rumour and innuendo. It's a tragedy for all concerned," he said.

Indecent assault carries a maximum penalty of 10 years in jail, but judge Michael Bourke indicated Milne would most likely be fined. He said he had to weigh up whether to impose a conviction.

"It seems to me, if I might say in a guarded way, a fine seems the most appropriate sentence," Judge Bourke said.

Mr Dunn said Milne had "misread" the situation at the time, but his offending was reckless and spontaneous, at the lower end of the scale and no threats of violence were involved.

The court heard details of how Milne had been branded a "rapist" for 10 years and how his family had suffered constant anxiety and distress at the abuse.

Mr Dunn said his client had been condemned in the court of public opinion, which had a major bearing on his emotional, psychological and financial well-being, which had extended to his wife and their children and the couple's extended families.

Milne and Montagna were arrested in 2004 but the investigation was dropped that year without charges being laid.

Mr Dunn said it was an on-field remark made by then Collingwood coach Mick Malthouse – who called Milne a " rapist" at quarter-time in a 2010 game, and was subsequently fined – that triggered a new wave of abuse and sparked renewed investigations by authorities.

The court was told that following Malthouse's remark, Channel Nine interviewed Scott Gladman, the former detective who investigated the woman's complaint against Milne, and that the detective alleged that colleagues had pressured him to drop the case.

The Office of Police Integrity (now IBAC) reviewed the case and the Office of Public Prosecutions charged Milne with rape offences last year. Montagna was never charged.

Milne's wife, Melissa, said her husband had been "hysterical" after he was charged and outlined to the court the upsetting impact of constant taunts from the public.

She said she had once completed a school assignment for her son on his sporting hero because she feared what he would read online about his father. Another time, a Kmart staffer asked why she wanted photographs of "that rapist" when developing prints of her husband.

Mr Dunn also described as unfair constant suggestions that the victim was "unworthy" and that St Kilda had interfered in the initial police investigation.

Milne gave his occupation as "unemployed" and the court was told of his problems in gaining work because of the allegations against him.

His agent, Tom Petroro, said Milne had retired prematurely last year because of the pending trial and that he had lost "countless" endorsements over the years from companies concerned about a PR backlash.

Milne had also been denied AFL life membership, despite 275 games, because the league was concened that fans would boo the former Saint in a motorcade on grand final day, Mr Petroro said.

Mr Rochford said all sentencing options were available to the court.

Judge Bourke said he would consider what impact a conviction would have on Milne's future job prospects. He bailed Milne to return to court on November 18 for sentencing.

UPDATE 11.03am: Former St Kilda footballer and Strathfieldsaye premiership star Stephen Milne has pleaded guilty to one count of indecent assault.

But Milne has formally had three rape charges discontinued.

A mention of the case, which was to start this month as a trial, was held on Thursday morning in the County Court.

Milne, 34, was scheduled to stand trial on November 24, charged with three counts of rape over accusations he raped a young woman in March 2004 at the Highett home of Milne's then St Kilda teammates Leigh Montagna and Justin Koschitzke. Milne pleaded not guilty to the charges after a committal hearing at Melbourne Magistrates Court last year.

The prosecution had alleged Milne raped the woman, then 19, despite her repeatedly saying "no" and that she thought she was with Montagna at the time. The incident was alleged to have happened in the early hours of the morning after St Kilda's family day in mid-March 2004, which followed the Saints' win in that year's pre-season competition. Milne and Montagna were arrested in 2004 after the woman reported allegations to police.

The committal hearing last year was told Milne denied having sex with the woman who had accused him of rape.

The woman and a friend were in the same bedroom with Milne and Montagna at the time, the committal was told.

Milne was charged in June last year following a probe into the initial police investigation by the Office of Police Integrity

EARLIER: The rape charges against former St Kilda footballer and 2014 Strathfieldsaye premiership star Stephen Milne are to be discontinued.

It is expected that Milne will now plead guilty to a charge of indecent assault.

A mention of the case, which was to start this month as a trial, will be held on Thursday morning in the County Court.

Milne, 34, was scheduled to stand trial on November 24, charged with three counts of rape over accusations he raped a young woman in March 2004 at the Highett home of Milne's then St Kilda teammates Leigh Montagna and Justin Koschitzke. Milne pleaded not guilty to the charges after a committal hearing at Melbourne Magistrates Court last year.

The prosecution had alleged Milne raped the woman, then 19, despite her repeatedly saying "no" and that she thought she was with Montagna at the time. The incident was alleged to have happened in the early hours of

the morning after St Kilda's family day in mid-March 2004, which followed the Saints' win in that year's pre-season competition. Milne and Montagna were arrested in 2004 after the woman reported allegations to police.

The committal hearing last year was told Milne denied having sex with the woman who had accused him of rape.

The woman and a friend were in the same bedroom with Milne and Montagna at the time, the committal was told.

Milne was charged in June last year following a probe into the initial police investigation by the Office of Police Integrity.

Montagna was never charged.

Milne's hearing in the County Court on Thursday was scheduled to start at 10.15am.

Milne finished his playing career in the AFL last year, after 275 games for 574 goals for St Kilda.

TIMELINE: HOW THE SAGA UNFOLDED

2004 - St Kilda player Stephen Milne accused of rape, after he and team-mate Leigh Montagna met two woman at a Bayside hotel after a family day function at the club's Moorabbin base. Both players immediately interviewed by detectives from Brighton police station, who launch a six-week investigation, but no charges were laid due to a lack of evidence. Milne denies all allegations of rape.

2010 - Two former detectives claim colleagues at Brighton police station, with links to St Kilda Football Club, had attempted to sabotage their investigation. Former officer Scott Gladman said tapes of interviews with Milne and Montagna were stolen from his desk and the alleged victim's statement was leaked to the club during the investigation.

2010 - Victoria Police's ethical standards department raid the Brighton criminal investigation unit and confirmed a significant amount of evidence from the case against Milne was missing, including master tapes of interviews.

2012 - The Office of Police integrity calls for evidence from the 2004 investigation to be reviewed by the specialist sex crime squad. OPI releases a report that found there was no specific evidence of actual interference or inappropriate influence. But Assistant Commissioner Stephen Fontana said he was "extremely disappointed" at Victoria Police's handling of the investigation.

2013 - Following a 12-month investigation, sex crime squad decided it had enough evidence to charge Milne with four counts of rape. Victoria Police release a statement conceding the original investigation was " substantially inadequate".

2013 - Senior St Kilda players approach club sponsers, coterie members and prominent supporters to make donations for the legal defence of Milne, who retired that season.

2013 - During the committal hearing in the Melbourne Magistrates Court, Leigh Montagna said he heard the woman say "no", but there was no change in the "friendly" atmosphere in the room. He [Mr Milne] just said, 'sweet, no problem', or something like that," Mr Montagna told the court. But the other woman present in the room said she felt intimidated and opened the door, when she heard her friend say "no" to Mr Milne.