A spokesman for Scolari said the tough-talking Brazilian, who is also known as Felipao, or Big Phil in English, had opted to stay in Europe with his family but was yet to decide whether he will stay on with Portugal.

A CBF spokesman confirmed that Scolari had been offered the job but said the confederation had not decided on the future of current coach, Carlos Alberto Parreira. A decision on Parreira's fate should be announced next week, the spokesman said.

Portugal reached the World Cup semi-finals under Scolari, while five-times world champions Brazil were knocked out of the tournament by France in the quarter-finals.