Palmeiras signs former Sao Paulo coach Ramalho

SAO PAULO (AP) - Palmeiras has reached a deal to hire former Sao Paulo coach Muricy Ramalho until the end of 2010.

Ramalho, who led Sao Paulo to three consecutive Brazilian league titles before being fired last month, will replace Vanderlei Luxemburgo, who also was recently fired.

Palmeiras and Ramalho had failed to reach a financial agreement earlier this month, but restarted negotiations last week and closed the deal Tuesday night after Ramalho met with Palmeiras president Luiz Gonzaga Belluzzo.

Belluzzo, a renowned economist who worked for the Brazilian government in the late 1980s, announced Ramalho's signing on Twitter. Financial details were not released, but local media said Ramalho will earn a monthly salary of about $200,000.

Sao Paulo fired Ramalho on June 20 after the club failed to reach the Copa Libertadores semifinals following a home loss to fellow Brazilian club Cruzeiro. Former AS Monaco coach Ricardo Gomes took over Ramalho's job.

Luxemburgo, a former coach at Real Madrid, was fired by Palmeiras after its elimination by Uruguay's Nacional in the Copa Libertadores quarterfinals, Latin America's most important club competition.

Luxemburgo, who is now coaching Santos, said he was fired because he publicly criticized the transfer negotiations of Palmeiras striker Keirrison to Barcelona.

Palmeiras was being coached on a temporary basis by Jorginho, a former player who led the team to one draw and four straight victories in the Brazilian league, leaving the team alongside Atletico Mineiro in equal first place in the standings with 25 points.

Many fans had been in favor of keeping Jorginho and against hiring the coach from such a fierce rival. Jorginho will remain as an assistant to Ramalho.

Palmeiras plays at Goias on Wednesday, but Ramalho won't debut until after the team's match against Corinthians on Sunday.

Palmeiras is a four-time national champion but hasn't won the Brazilian league since 1994. The club won the Brazilian Cup in 1998 and the Copa Libertadores in 1999.