Brazilian coach Luiz Felipe Scolari extended his contract with Portugal until 2008, the Portuguese Football Federation (FPF) said. "The Federation management approved the extension of the contract with Luiz Felipe Scolari and his technical aides," the FPF said in a statement published on their website on Friday. "The new agreement is between Aug. 1, 2006 and July 31, 2008." Scolari preferred to extend his stay with Portugal after turning down an offer from his home nation Brazil after their disappointing display in the World Cup. 'Big Phil' led Portugal to the Euro 2004 final on home soil, before losing the title following a 1-0 defeat to Greece. He also guided Portugal to the fourth place in the World Cup, for the first time since 1996. Scolari will now start preparing his side for Euro 2008 in Switzerland and Austria.