I changed my source file by appending the "ul" to the body and not to the parent element.
Still there is issue with zIndex, so i just gave it 1006 (higher then the dialog zIndex);
.appendTo("body")
this.menu = $( "<ul></ul>" )
.addClass( "ui-autocomplete" )
.appendTo("body")
.menu({
focus: function( event, ui ) {
var item = ui.item.data( "item.autocomplete" );
if ( false !== self._trigger( "focus", null, { item: item } ) ) {
// use value to match what will end up in the input
self.element.val( item.value );
}
},
selected: function( event, ui ) {
var item = ui.item.data( "item.autocomplete" );
if ( false !== self._trigger( "select", event, { item: item } ) ) {
self.element.val( item.value );
}
self.close( event );
self.previous = self.element.val();
// only trigger when focus was lost (click on menu)
if ( self.element[0] != document.activeElement ) {
self.element.focus();
}
}
})
.zIndex(2000)