Luiz Felipe Scolari begins life as Chelsea’s manager this morning having secured his first signing. The Champions League finalists yesterday completed the purchase of the Barcelona midfielder Deco on a two-year contract.

The 30-year-old playmaker has followed his Portugal manager to west London in an £8m deal which may yet have an effect on Frank Lampard’s future at Stamford Bridge. The England midfielder is currently on holiday in Italy but with only a year to run on his contract he has been courted byChelsea’s former manager, Jose Mourinho, who is now at Internazionale. Deco’s arrival appears to threaten Lampard’s place in the team.

The Premier League club had been unsure whether Deco, who was below par in a Barcelona side well adrift of Real Madrid last season, represented value for money but they were persuaded by his fine form at Euro 2008. The midfielder was a key member of Scolari’s squad in Austria and Switzerland as Portugal reached the quarter-finals and has long been viewed as the coach’s on-pitch lieutenant.

“I am sure I have come [to Chelsea] at the right time to do great things and be able to help Chelsea go back to the way it was and be first, not only in England but also to win the Champions League,” said Deco. “That has been their dream for so long. The Premier League is a great league and it is getting better. You could see that at the Champions League final where you had two English teams.”

“It is great that we have so many great players here at Chelsea and it is great that there is the competition which is healthy for everybody. This just makes the team better. To have great players in any position just enhances the club. I know it is a new challenge but I am looking forward to it. I know I need a little bit of time to adapt but I am sure I will adapt quite well and quite fast and do my best for the team.”

The Brazilian-born midfielder is a two-times European Cup winner, with Porto in 2004 and Barcelona in 2006, who came close to moving to Stamford Bridge in the summer of 2004. He fell out of favour towards the end of Frank Rijkaard’s reign at Barcelona.

His vision and ability on the ball will be appreciated in the Premier League, with the creativity that was a key factor for Scolari’s Portugal team. He joins his national team-mate Jose Bosingwa, a £16m arrival from Porto, at Chelsea and his signature is a small victory for the club over Mourinho. The Inter manager had hoped to be reunited with a player he first coached at Porto, where Deco earned the nickname “Magico”. Further struggles appear to lie ahead, however.

Scolari supplied a list of potential signings to the Chelsea chief executive, Peter Kenyon. It was topped by Milan’s Kaka. Scolari would still like to meet the likes of Lampard and Ricardo Carvalho to discuss their prospects at the club. Inter have expressed interest in both players.

Chelsea’s first-team squad are due back at training next Monday. Chelsea had wanted to keep Lampard but they are aware that, though there has been no formal contact between the clubs, Inter have made their interest known.

Carvalho’s future in west London has also, potentially, been complicated by Mourinho’s appointment at Inter. Chelsea had intended to open discussions with the player on a new contract when he returned for pre-season training. Asked about his future, the Portugal defender was noncommittal both prior to the Champions League final and at Euro 2008.

Ref From guardian.co.uk

Aston Villa manager Martin O’Neill says Gareth Barry can leave for Liverpool - if the Anfield club meet their valuation of the England midfielder.

Liverpool had a second bid of £13m turned down two weeks ago and reports suggest Villa will only sell for £18m.

“If Liverpool meet our valuation, he will have his express wish to leave Villa Park granted,” said O’Neill.

Barry, 27, criticised Villa for not trying hard enough to keep him but O’Neill insists they want him to stay.

Barry has told Villa he wants to sign for Liverpool and they still hope to sell Xabi Alonso to Juventus to help fund the deal, but are yet to receive a firm offer.

BBC Sport understands that manager Rafael Benitez will make an improved offer to sign the Aston Villa captain in a renewed attempt to bring the acrimonious saga to a conclusion.

O’Neill has been critical of Liverpool’s pursuit of Barry, who signalled his intention to move when he complained on Sunday about Villa’s lack of urgency in speaking to him.

Contrary to what he said, we desperately wanted to keep Gareth - and he knows that

“There’s no going back, it’s time for me to move on,” he said.

“I’m desperate to play Champions League football and that’s why I have to leave Villa.

“Villa kept saying they wanted me to stay but I have not heard from the manager for weeks.

“It’s seven weeks now since the season finished but while the gaffer’s found time to be a pundit at Euro 2008, he hasn’t found the time to speak to me.

“Have Villa offered me anything to try to persuade me my future is at Villa Park, not Anfield? Not a thing.”

But O’Neill has hit back to vehemently deny Barry’s claim.

“The chairman and I were surprised at Gareth’s comments,” he said.

“Contrary to what he said, we desperately wanted to keep him - and he knows that.”

Barry captained England for the first time and scored his first international goal during the recent friendly against Trinidad and Tobago.

Liverpool are keen to partner Barry in midfield with his England colleague Steven Gerrard and have declared their interest publicly, much to O’Neill’s fury.

Freeing up the required funds for Barry could pose a problem for Benitez, as the Anfield boss has admitted he is expecting to have a reduced transfer budget as a result of the feud between American owners Tom Hicks and George Gillett.

Ref From channel4.com