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The 42-year-old's previous deal was due to expire after this summer's European Championships, but the Portuguese Football Federation confirmed today that an agreement had been reached with Bento and his coaching team for two more years.
A statement on federation website www.fpf.pt read: "The Portuguese Football Federation announced that the contractual relationship of the national coach, Paulo Bento, and the entire technical team selection was renewed until July 2014.
"The president, Fernando Gomes, and the national coach, Paulo Bento, will address this issue at a press conference scheduled for tomorrow, May 4, at 1230 in the FPF headquarters."
Bento took up the Portugal reins in September 2010, replacing Carlos Queiroz, and led his side to Euro 2012 via the play-offs and a 6-2 aggregate victory over Bosnia-Herzegovina last November.
They will open their campaign in Ukraine against Germany on June 9 and face further Group B games against Holland and Denmark.