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The Brazilian, who starts his £6million-a-year job at Stamford Bridge on 1 July, has already begun drawing up a shopping list of the game's top stars.

Backed by Chelsea owner Roman Abramovich's millions, Scolari looks certain to move for £10m-rated Barcelona star Deco, who has thrived during his time under the Portugal coach.

Other targets are likely to include Valencia's David Villa, AC Milan's Kaka and Barcelona's Samuel Eto'o. But Scolari will also be focused on keeping Chelsea's top players and will start by convincing defender Ricardo Carvalho to sign a new deal.

Scolari has enjoyed a great relationship with the 30-year-old during his five years with Portugal and a contract worth £100,000-aweek is understood to be waiting when he returns from Euro 2008.

Scolari's appointment on a four-year deal ends the managerial uncertainty at Chelsea and may also help keep Frank Lampard, who is due to resume contract talks after returning from holiday.

Chelsea confirmed Scolari as their new manager just hours after his Portugal side beat the Czech Republic 3-1 at Euro 2008 last night.

A club spokesman said: "Felipe has great qualities. He is one of the world's top coaches with a record of success at country and club level, he gets the best out of a talented squad of players and his ambitions and expectations match ours. He was the outstanding choice."

Abramovich is understood to have played a major role in Scolari's appointment and met with the former Brazil coach's advisors in Switzerland on Monday.