Zagallo also guided the United Arab Emirates to their first World Cup finals in 1990, but was dismissed from his post before the tournament.
Zagallo is currently assistant coach (as in 1994, the main coach is Carlos Alberto Parreira) of the Brazilian team in the World Cup of 2006, which was eliminated by France.
As a player, Zagallo was the left-forward of the Brazilian teams in the Cups of 1958 and 1962; he scored goals in both tournaments, including one in the final match against the Swedish team, in 1958.
Zagallo had indicated he would continue his coaching career elsewhere, Marinho said.
Zagallo was fired by Brazil after the World Cup last year but, instead of taking the easy option of retirement, accepted the new challenge of his first job in Sao Paulo when he took over at Portuguesa.
Zagallo is intensely proud of his record as the only man involved in four World Cup-winning sides -- as player in 1958 and 1962, when he was Brazil's left-winger, coach in 1970 and assistant to Carlos Alberto Parreira in 1994.