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Manchester City manager Sven-Goran Eriksson has held talks with Portuguese club Benfica, BBC Sport understands.

The City boss, whose job is under threat from club owner Thaksin Shinawatra, has twice previously managed the Lisbon club.

BBC Sport understands Eriksson has been told he will be sacked at the end of the season and Luiz Felipe Scolari has been approached as a replacement.

Thaksin has claimed Eriksson's future as City boss is yet be resolved.

"We have made no decision," said the former Thai prime minister. "We will do an evaluation at the end of the season."

The Swedish coach's agent Athole Still was unavailable for comment late on Wednesday.

Benfica spokesman Ricardo Maia said: "Whether someone is or is not in Manchester to try to persuade Eriksson, we have nothing to say about it."

Eriksson has coached Benfica twice, leading the Lisbon club to two championships and a domestic cup in the early 1980s.

He then went to Italy but returned to Benfica in 1989, taking the club to the 1990 European Cup final, a game they lost to AC Milan, before winning the Portuguese title in 1991.

Benfica risk missing out on a Champions League spot for next season after a disappointing season.

They are fourth in the SuperLiga, three points behind rivals Sporting Lisbon.

Thaksin Shinawatra will wait until the end of the season to make a decision

Thaksin, speaking at a golf tournament in Beijing, would not be drawn on whether the club was interested in the Portugal coach, or former Chelsea manager Jose Mourinho, who has also been linked with the City post.

"They all - Sven, Scolari, Mourinho - they are great coaches, great managers," he said.

However, he did admit that he had told Eriksson he was unhappy with City's dip in form which saw them fall out of contention for European football.

"During the season, we may complain for improvement but that's normal for every club," said the former Thai prime minister.

"But we will discuss at the end of the season what needs to be changed, what needs to be added to the success of the club."

Despite Thaksin's claims to the contrary, a source close to Eriksson has told BBC Sport that the former England coach will be sacked at the end of the season.


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And BBC Sport also understands that contact has already been made between City and Scolari's representatives in a bid to bring him to Eastlands, with a deal worth a reported £3.2m-a-year ready to be rubber-stamped.

Scolari, 59, is believed to be interested in succeeding Eriksson - but wants to wait until after Euro 2008 before making a decision.

Scolari has also previously been reluctant to uproot his family from Portugal and cited intrusion into his private life as one of the reasons he rejected the chance to succeed Eriksson as England coach in 2006.

Thaksin, on the other hand, is thought to want a swift answer from Scolari.

City fans have reacted angrily to Eriksson's imminent departure and Thaksin hopes to head off further unrest with a quick announcement that he has captured the man who won the World Cup with Brazil in 2002.

Despite his treatment at the hands of Shinawatra, Eriksson is willing to lead City on their post-season tour of Thailand and Hong Kong next week, a source close to the Swede has told BBC Sport.

The source said it was "business as usual" for Eriksson and his coaching team and that no further talks were planned with Shinawatra before the end of the season.

If City fail to land Scolari, they are likely to turn their attention to Slaven Bilic, even though he signed a new contract with Croatia last week.

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