Eriksson signs England deal

England squad versus Sweden

England coach Sven-Goran Eriksson has ended the immediate uncertainty over his future by agreeing a new deal.

The Swede, who has been repeatedly linked with Premiership side Chelsea, has signed a contract extension that will keep him at the helm until 2008.

Eriksson said: "I'm glad we've been able to come to an agreement to extend my involvement with the national team."

Eriksson's assistant, Tord Grip, has also pledged his future to England beyond the 2006 World Cup.

Eriksson admitted that he would have preferred to have signed his new contract after the European Championships in Portugal.

"In an ideal world I would have liked to wait until after Euro 2004, but that was more or less impossible with all the speculation," he said at a news conference on Sunday.

When clubs come and you have ambition you listen to other jobs... you should be allowed to even if you are England manager Sven-Goran Eriksson

"I have added to that speculation. From where I'm coming from there is nothing wrong in listening to other people, other clubs, in England as well as other countries.

"But it's best to kill the rumours."

Eriksson has been a target for several top clubs in Europe, with Real Madrid and Inter Milan rumoured to be among them.

But the former Lazio and Benfica boss has been consistently linked with Chelsea, although he insists a possible move to Stamford Bridge was never really on the cards.

"I was not close to joining Chelsea. I was listening. When clubs come and you have ambition you listen to other jobs," he said.

"You should be allowed to even if you are England manager."

Sven's a quality coach - the press should stick to recording history instead of trying to create it From Philip Walton Have your say on 606

Speculation of a move to Chelsea is unlikely to go away despite Sunday's announcement and Eriksson's protestations.

Reports suggest a release clause has been inserted in Eriksson's contract allowing him to quit after the 2006 World Cup.

Mark Palios, the FA's chief executive, refused to confirm or deny whether a get-out clause existed.

But under repeated questioning from journalists, Eriksson maintained he would honour his new contract.

"I have a contract until 2008. I have a great job. It's bigger than I thought," he said.

"But it's always very difficult that who has this job should be a saint, shouldn't earn a lot of money, shouldn't have a private life and shouldn't listen to other offers."