Portugal coach Luiz Felipe Scolari has denied reports that he has agreed to take over at Manchester City.

Scolari has strongly been mooted as a possible replacement for Sven Goran Eriksson at Eastlands, with the Swede facing the sack.

Eriksson looks likely to be relieved of his duties over the summer by City owner Thaksin Shinawatra and Scolari has been installed as favourite to succeed him.

Scolari’s contract expires at the end of June after Euro 2008 and as yet he has not discussed a possible extension with the Portuguese soccer federation.

However, Scolari has distanced himself from the speculation linking him with the City job, saying he is happy as coach and that Portugal and would be keen to extend his contract with the Euro 2008 hopefuls.

"Portugal offers me everything I need," Scolari told Portuguese public broadcaster RTP.

"I have no agreement with that club."