"There was nothing we could do. It was a financial issue and we couldn't match Chelsea's offer."
Chelsea issued a statement defending the timing of the announcement.
"We did everything above board and correctly. It was the appropriate time for both parties to announce and had been agreed in advance. The Portugal football federation were informed."
Portugal have the difficult task of finding a replacement for Scolari as they turn their attentions to qualifying for the 2010 World Cup in South Africa.
Madail added: "Whether some like it or not, Scolari left a mark in Portuguese football. He is a spectacular coach who made a huge impact and that will remain in the history of Portugal. But life continues.
"The new coach will have to speak Portuguese but not necessarily be Portuguese.
"He has to have ambition and be a winner. He has to be someone who the players respect."
Portugal have also had to deal with the distraction of Cristiano Ronaldo's club situation, with the winger at the centre of persistent rumours throughout the tournament that he will be leaving Manchester United for Real Madrid.
"I don't know what is going on in Ronaldo's mind and I don't think that contract problems would affect a player," said Madail.
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