The Portuguese football association on have confirmed that a deal has been struck with World Cup-winning Brazilian coach Luiz Felipe Scolari.
Scolari, who led Brazil to World Cup victory following a torrid qualifying campaign, has now been handed the task of guiding host nation Portugal through to the 2004 European championships.
His contract, which will be signed in mid-December, begins in January 2003 until July 2004.
"Negotiations, which were held without intermediaries, have been going on for some months and we reached a total consensus on all the technical, administrative and financial aspects involved in the hiring of Mr. Luiz Felipe Scolari," the association said in a statement released just one day after Scolari's agent told private radio TSF the Brazilian had agreed to coach Portugal's squad.
No financial details of the deal were released, the association saying only that the hiring of Scolari, known in football circles as "Big Phil", would involve "our biggest ever effort".
It is believed that one of the stumbling blocks to hiring Scolari was his expected high wage demands.
The 54-year-old Brazilian rejected more attractive financial offers to accept the Portugal brief because, added the statement, he believes the country has good prospects for 2004 where Portugal automatically qualify as hosts.
According to reports, Scolari, who stepped down after he led Brazil to their fifth World Cup in July, had also received offers to coach the Mexican, Italian and Uruguayan national teams.
The top brass in Portuguese football gave the green light for the association to hire a foreign coach to revive Portugal's fortunes.
Portugal have been without a coach since August when Antonio Oliveira was sacked following the country's disappointing first-round exit in the World Cup.
The country last had a foreigner as head of its national squad in 1966 when a Eusebio-inspired team led by Brazilian Otto Gloria made it to the World Cup semi-finals.
Portugal lost that year to host nation and eventual winners England.