Costinha intends to build on FC Paços de Ferreira's "good work of recent years" after being unveiled as the replacement for FC Porto-bound coach Paulo Fonseca.
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Former Portuguese international midfielder Costinha will lead FC Paços de Ferreira in their maiden UEFA Champions League campaign having been confirmed as the successor to Paulo Fonseca, who was appointed FC Porto coach on Monday.
Costinha, a key part of the Porto squad that under José Mourinho won the UEFA Cup in 2003 and then Europe's premier club competition 12 months later, has signed a two-season deal.
The 38-year-old will be assisted in his second head coach role by ex-Portugal, Porto and FC Dinamo Moskva team-mate Maniche. Costinha was previously in charge of SC Beira-Mar, having been hired in mid-February, but could not preserve the Aveiro side's Liga status.
Under Fonseca, Paços de Ferreira, from a town 35km from Porto, achieved a club-best finish of third place in 2012/13, an act Costinha accepts will be hard to follow. "It's an enormous pleasure and honour to be here because this is a real family – Paços are the champions of humility," he said.
"This step is very important for me and the coaching staff. [Repeating] the third place last season is a difficult goal but nothing is impossible. We want to continue Paços's good work in recent years."
A scorer of two goals in 53 outings for Portugal, Costinha represented his country at the UEFA European Championships of 2000 and 2004 and the 2006 FIFA World Cup. The Lisbon-born trainer also played for AS Monaco FC – with whom he won Ligue 1 in 2000 – Atalanta BC and Club Atlético de Madrid in a 16-year career.
Paços de Ferreira will enter the UEFA Champions League at the play-off stage, the draw for which takes place on 9 August.