The Pozarevac Town Council also decided to declare a day of mourning in the town on Saturday, the day of burial.
Earlier on Thursday, Milosevic's body was transferred from a private morgue at Belgrade's Sveti Sava Hospital to the Revolution Museum within the late Marshall Tito's memorial complex.
Culture Minister Dragan Kojadinovic and Museum Director Ljiljana Cetinic protested the move, with the latter saying that it was "an unprecedented decision in the culture of Serbia and Belgrade."
About 200 citizens gathered outside the Revolution Museum around noon to pay their last respects to Milosevic, whose body will be on display there until Saturday when it will be taken to Pozarevac.
Milorad Vucelic, the vice-president of Milosevic's Socialist Party, told reporters outside the museum that Milosevic's widow Mirjana Markovic was expected to arrive from Moscow on Friday to attend the funeral.
Markovic is wanted by a Belgrade court on charges of corruption and abuse of power.