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The club was reported to ink a contract of more than two million euros, and a one or two years optional clause.
“Mr Eriksson is one of the most famous coaches in the world, we believe with his ability and experience we could do better in Chinese Super league,” Lu Yi, vice president of the Chinese club, told Xinhua on Tuesday.
The 65-year-old Swede has won more than 20 major trophies as a manager with a variety of clubs in Sweden, Portugal, Italy and England.
“Eriksson has a wide range of experience in the world’s top clubs such as Lazio, Roma and Manchester City, which will help us a lot,” Lu said.
Guangzhou R&F are currently seventh in China’s Super League.
The club has Nigerian striker Yakubu Ayegbeni in their ranks, a player Eriksson signed on loan while in charge of Leicester City in 2010.
“Yes, Eriksson knew Yakubu well, and we believe they can get along well again in China. Actually, Eriksson also has good knowledge of the whole team,” Zhang Bin, general manager of Guangzhou R&F football club, said.