Luiz Felipe Scolari, the man who turned down the chance to coach England citing a fear of media intrusion, will take up the same role at the helm of one of the most high-profile clubs in world football after agreeing to become Chelsea’s third manager in the space of nine months.

The Barclays Premier League club announced last night that the Brazilian, 59, has been given a four-year contract worth £5.5 million a year and will report for duty on July 1, two days after he hopes to have won the European Championship as coach of Portugal.

Scolari’s appointment had been expected because he has been the leading candidate since Avram Grant’s sacking last month, but the timing of its announcement — less than two hours after Portugal’s 3-1 win over the Czech Republic in Geneva, a match watched by Roman Abramovich, the Chelsea owner — was extraordinary.

Chelsea claimed that they had made a low-key announcement to cause minimum disruption to Scolari’s work at Euro 2008, but in reality the Portugal training camp will be besieged over the next few days and the development could damage their chances of winning the tournament.

“Felipe has great qualities,” a club statement read. “He is one of the world’s top coaches with a record of success at country and club level, he gets the best out of a talented squad of players and his ambitions and expectations match ours. He was the outstanding choice.

“Out of respect for his current role as head coach of the Portuguese national team, and to ensure minimum disruption to this work, there will be no further comment from Chelsea FC, nor from Felipe about his new role, until his employment with us commences.”

Scolari was installed as the favourite as soon as Chelsea made it clear that they were looking for a disciplinarian and has been the only credible candidate since the withdrawals of Guus Hiddink, Carlo Ancelotti and Luciano Spalletti. Contrary to popular belief, Frank Rijkaard and Roberto Mancini were never given serious consideration and although Ancelotti, the AC Milan coach, was approached, recruiting a man of Scolari’s stature should put an end to accusations that they have ended up with their secondchoice candidate. Ancelotti is understood to have priced himself out of the job, the Italian demanding a salary of £7 million.

Unlike when he rejected the opportunity to manage England two years ago, Scolari’s desire for the job was such that he was willing to negotiate during Euro 2008 and talks with Chelsea have continued over the past few days. Jorge Mendes has been a regular visitor to their training camp in Neuchâtel to lead discussions on behalf of Chelsea, with the Portuguese agent having enjoyed a lucrative few days after installing José Mourinho — another client and Grant’s predecessor at Stamford Bridge — at Inter Milan last week.

The deal with Scolari is understood to have been completed on Monday, with the Brazilian giving the green light to its announcement after Portugal secured qualification for the quarter-finals as group A winners.

Scolari has had an itinerant career, with 19 jobs in the past 25 years, but coaching Portugal has been his only position in Europe. Winning the 2002 World Cup with Brazil was the undoubted pinnacle, although he also guided Portugal to the final of Euro 2004 and the semi-finals of the last World Cup — on all three occasions having beaten Sven-Göran Eriksson’s England on the way.

Chelsea see Scolari as a man able to take on Sir Alex Ferguson on and off the pitch and their first battle is likely to happen soon, although before he locks horns with the Manchester United manager, the Brazilian will need to improve his limited English.

A serious battle may be brewing as Scolari is believed to have been advising Cristiano Ronaldo, the Portugal winger, to leave Old Trafford for Real Madrid during private conversations over the past few weeks. United have reported Real to Fifa for what they perceive as a deliberate attempt to unsettle Ronaldo and are likely to have strong words with Chelsea if he does express a firm desire to leave.

The appointment of Scolari also raises the intriguing possibility of Abramovich realising his dream of having several Brazil stars playing for Chelsea, with Kaká, the AC Milan midfield player, top of their shopping list.