Luiz Felipe Scolari has been offered the job of England manager and is discussing terms with the Football Assocation. England's FA chief executive Brian Barwick is reportedly in Lisbon to tyy and seal the deal with Portugal's Brazilian coach.
Scolari, now 57 guided Brazil to victory in the 2002 World Cup and is contracted to take Portugal to the 2006 World cup but comes out of contract after the World cup just as England's current coach's contract ends.
Scolari is said to have a gentleman's agreement with the Portuguese FA not to commit himself to another job until his current deal runs out in July.
It is however understood that the FA are in Lisbon to get this agreement waived.
The FA has also held talks with Middlesbrough boss Steve McClaren, Bolton's Sam Allardyce, Alan Curbishley of Charlton and former Celtic boss Martin O'Neill.
The job is reportedly worth an estimated £3m annual salary and would give Scolari a significant pay rise so he is expected to accept the offer but on his terms if they can be agreed upon.
Scolari's Portugal could face England in the qtr finals presenting an interesting loyalty scenario.