Insiders say the damages figure includes the 4.5 million prize money the world No 1 expected to have won reports the Sun newspaper.
A source close to his agent Edoardo Artladi said: “It’s well known that Novak and his family feel he was poorly treated in the quarantine hotel in Melbourne.
“His mother revealed how it was full of fleas and maggots. He was kept a virtual prisoner.”
Lawyer Toma Fila added: “He was subjected to humiliating treatment. He should sue.”
Djokovic is back home in Belgrade, Serbia, where he met fans on his return when he was unceremoniously rejected by the Australian Government.