The Swede feels he has been effectively handed his notice by City owner Thaksin Shinawatra and met with Benfica's president Luis Felipe Vieira on Wednesday night.

Eriksson is quoted as saying: "I've had a meeting with the Benfica people. I'm considering the offer and it could be a step forward in my career. Let's see what happens."

Rui Costa, the veteran Portuguese midfielder who played under Eriksson and is to become Benfica's director of football after hanging up his boots next week, was also at the meeting.

Thaksin, the former Thai prime minister, said he had yet to decide whether to stick with Eriksson or approach Jose Mourinho or Luiz Felipe Scolari.

Thaksin said: "There will be an evaluation at the end of the season of what needs to be changed, what needs to be added to the success of the club."

Asked about the managerial position, he added: "We have not decided yet. All of them - Sven, Scolari, [Jose] Mourinho - they are all great coaches, great managers. We will discuss all of this at the end of the season."