Manchester City chairman Thaksin Shinawatra has struck a deal with Portugal coach Luiz Felipe Scolari.

The Mirror says Shinawatra targeted 'Big Phil' after making it clear Sven Goran Eriksson will be axed at the end of the season. Brazilian Scolari, 59, who had said he will quit as Portugal boss after Euro 2008, will then take charge at Eastlands after flying to England for talks with Shinawatra on Wednesday.

Scolari, who led Brazil to the 2002 World Cup, was at Chelsea's Champions League clash with Liverpool where super-agent Pini Zahavi finalised the deal.

Shinawatra's overtures and the promise of a £2.5million-a-year contract have been difficult to resist and Scolari has told his network of coaches and scouts he will take charge at City.