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Benfica have announced the shock resignation of manager Jorge Jesus on their official website. Although Benfica have won the league title and finished second twice in the Liga ZON Sagres in Jesus' three years in charge, the fans have been divided over Jesus' management style and Jesus has decided to walk away from the club.

However, reliable sources from inside the club have told Sky Sports that Jesus had a massive bust up with the club president, Luís Filipe Vieira, over club bonuses and that had led to Jesus tendering his resignation to the club late last night. The board are said to be shocked at Vieira's attitude towards Jesus during the bust up and have warned him that this incident could plunge the club into crisis.

Benfica will now be on the lookout for a new manager, with Frank Rijkaard, Luiz Felipe Scolari and Carlos Queiroz in the mix, with Benfica legend Rui Costa an outside favourite for the job.

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Benfica have announced the return of former player and club legend Rui Costa as the new manager of the club. Rui Costa, 40, had been the director of football at Benfica before Jorge Jesus shockingly resigned from the club, and he has beat out the likes of Frank Rijkaard and Luiz Felipe Scolari to the job.

However, rumours emerging from Lisbon suggest that Benfica had been in advanced negotiations with Rijkaard over the managerial role until talks grounded to a halt over financial terms. However, the hiring of Rui Costa will delight Benfiquistas as the club looks to bring back its glory days.

Rui Costa will be on a £18.5 p/w contract until the end of the 2012/13 season.

Benfica have signed Norwegian midfielder Ruben Yttergård Jenssen from Tromsø for £1.8 million on a four-year deal.

Yttergård Jenssen, who has been nicknamed the Norwegian Xavi, arrived for a medical yesterday and after passing the medical, was unveiled to the Portuguese media this morning.

Benfica manager Rui Costa, at the unveiling, has said that Yttergård Jenssen is a "phenomenal" player and had no doubts that he would make a huge impact for the club. "Ruben is a superstar in the making, his passing skills are up there with the best in the world, alongside the likes of Xavi and Pirlo, and I believe that he will be an outstanding player for Benfica."

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