Scolari reportedly turned down Brazil to stay with Portugal
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Portugal coach Luiz Felipe Scolari has signed a new deal that will see him stay on as national coach until 2008.
The Brazilian-born manager led Portugal to fourth place in the World Cup finals in Germany, their best showing for 40 years, beating England en route.
And despite speculation linking him with a second spell as Brazil coach, he has signed a new two-year deal.
It means Scolari, who turned down the England job in April, will be in charge at the 2008 European Championships.
The 57-year-old's previous contract with Portugal was due to run out on 31 July.
And, according to a spokesman for the Brazilian Football Confederation, he was offered the chance to take over Brazil again, having led them to World Cup glory in 2002.