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By ESPN Staff

Donadoni agrees new two-year deal

ROME, May 20 (Reuters) - Italy coach Roberto Donadoni has agreed a new two-year deal with an escape clause for both parties in case the Euro 2008 campaign goes badly, he said on Tuesday.

The Italian soccer federation said in March that a decision over Donadoni's contract, which runs out in July, would be postponed until after June's tournament.

However, a deal running until the 2010 World Cup in South Africa has now been agreed following constant media speculation over Donadoni's position.

The details of the contract will be finalised in the coming days. A reciprocal escape clause has been included, despite the coach saying it was unnecessary.

'I thank federation president Giancarlo Abete for having recognised my work. If Euro 2008 goes badly it will be me who walks away, a release clause is not needed,' Donadoni told a news conference.

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