According to talkSPORT, the Portuguese team turned to Silva after their preferred target, Ruben Amorim, was unwilling to accept the role.
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Despite Fulham offering a lucrative new deal worth around £8 million per year over three years to keep him at Craven Cottage, the tactician has opted for a return to Portugal on a lower salary package of roughly £4 million annually.
The 48-year-old has already taken steps toward the move, including reportedly purchasing property near Lisbon.
Silva has enjoyed a successful spell in London since arriving in 2021, guiding Fulham back to the Premier League and establishing them as a stable top-flight side, including a record 54-point season and a Carabao Cup semi-final appearance.