LISBON, July 3: The head of the Portugal soccer federation denied on Monday that Luis Felipe Scolari has agreed to stay as national team coach until 2008. Portuguese sports daily O Jogo reported that Scolari would stay regardless of how Portugal fared in their World Cup semi-final against France on Wednesday.

“That is a lie I am in a position to deny,” federation president Gilberto Madail said.

“I have spoken to Mr Scolari, we have been talking and you, the Portuguese journalists, will be the first to know when a deal is struck.”

According to the report, Gilberto Madail has already negotiated a new contract with Scolari worth an annual US$1.9 million after the federation found a new sponsor.

O Jogo didn't name the new sponsor.

Scolari led Brazil to the 2002 World Cup title and guided Portugal to the 2004 European Championship final, where they lost to Greece.—AP