Diego Costa has reportedly reached an agreement with Benfica after they tabled an offer of a two-year deal worth £5million for the former Chelsea striker.
Costa was released by Atletico Madrid by mutual consent in December, and has spent the last three months assessing his options.
Mundo Deportivo report that he headed back to his native Brazil to speak to some clubs there, but has decided that he wants to stay within European football.
The 32-year-old is said to believe he still has much to offer in the top leagues, and has also turned down an offer by Ligue 1 side Marseille to join them.